Resume Cross-LoC Trade, Bus Service, Don’t Harass Traders; Mehbooba Mufti Writes to Home Minister
Srinagar: Former Jammu and Kashmir chief minister and president of opposition People’s Democratic Party (PDP) Mehbooba Mufti has demanded the resumption of cross-LoC trade and bus service in divided Jammu and Kashmir, asserting that these constituted the biggest Confidence-Building-Measures (CBMs) between India and Pakistan.
She has asserted that the resumption of the trade and travel between the two parts of J&K would serve as a significant CBM for the people of the state and a step towards restoring normalcy in the region. She has also complained about those who were associated with the Cross-LoC trade being harassed by the authorities.
In a letter written to Home Minister Amit Shah, Ms. Mufti has expressed regret that the cross-LoC trade was suspended in 2019, leaving hundreds of those associated with it in the lurch. “Unfortunately, the traders who became crucial partners in this peace building exercise by participating in cross-LoC barter trade are now being harassed with notices demanding tax payments on transactions that were nonmonetary and tax exempt at that time,” she said, adding that these demands are “unwarranted, unjust and also a burden on these traders”.
The duty-free barter trade across the LoC from two points- Uri and Muzaffarabad and Poonch and Rawlakote was initiated as a CBM measure between the two South Asian neighbours in October 2008. But from day one, it was marred in many controversies and was on many times hit also by active hostilities breaking out between the armies of India and Pakistan along the 747-km long de facto border.
However, on April 18, 2019 the Union Home Ministry suspended the cross-LoC trade indefinitely saying the government has received reports that the trade routes were being "misused by some Pakistan based elements".
A statement issued by the ministry had said that the LoC trade through both Uri-Chakothi and Chakan-da-Bagh-Rawlakote corridors has been suspended pending "putting into place a stricter regulatory regime". The ministry order also said that the move "is to ensure that only bonafide trade takes place for the benefit of the people of J&K through this mechanism".
The PDP leader’s letter says, “As you are aware, in 2005, the Government of India initiated one of the most significant confidence-building measures in the region, namely the Cross-LoC bus service. This initiative facilitated the reunion of divided families on either side of the Line of Control (LoC) and was a monumental step towards fostering peace and goodwill. This was followed by the opening of Cross-LoC trade through Uri and Poonch in 2008. While initiatives took shape during the UPA regime, it is crucial to acknowledge that the groundwork was laid by the NDA Government under (Atal Bihari) Vajpayee ji’s leadership.”
Asserting that this barter trade was a unique and effective means of connecting people across the LoC without involving any cash transactions, she has said, “However, it is deeply regrettable that both the bus service and the trade have been suspended since 2019, causing significant hardship to those who depended on them for their livelihood”.
The letter further says, “Adding to their woes, traders who participated in this barter trade are now being served notices demanding tax payments for transactions that were non-monetary and did not involve any taxation at the time. These demands are not only unjust but are also impossible for these traders to meet, given that thousands have already lost their livelihoods due to the suspension of trade.”
Seeking the Home Minister’s urgent intervention, she has demanded that the tax demands must be withdrawn immediately to alleviate the anxieties of those affected. “I trust you will appreciate the gravity of the situation and take necessary action at the earliest,” she has said.
