Shipki La Traders Get Hope as CM Sukhu to Take IGST Issue to Centre
Traditional border traders in Kinnaur may soon get relief, with Chief Minister Sukhvinder Singh Sukhu set to raise the contentious Integrated Goods and Services Tax (IGST) issue with Union Finance Minister Nirmala Sitharaman on September 7.
The resumption of the historic India-China border trade through Shipki La on August 1 had brought hope to local traders after a six-year gap. However, enthusiasm quickly faded when traders decided to boycott the trade, arguing that the imposition of IGST on the traditional barter system had made the business economically unviable.
The Kinnaur Indo-China Trade Association had urged the state government to intervene and take up the matter with the Centre. Following assurances from the Himachal Pradesh government, traders have now decided to postpone their proposed hunger strike until September 7.
Association president Hishey Negi said the Chief Minister had assured traders that the issue would be discussed directly with the Union Finance Minister. The association is hopeful that a practical and trader-friendly solution will emerge from the meeting.
Concerns Over Trade Viability
According to traders, the traditional Shipki La trade operates primarily on a barter system, making the imposition of IGST an additional financial burden. They fear that the tax could significantly reduce trade volumes and affect the livelihood of those dependent on the border trade.
To address these concerns, a virtual meeting was recently held in Shimla involving senior government officials and representatives of the trading community. Among those present were Principal Adviser to the Chief Minister Ram Subhag Singh, the Kinnaur Deputy Commissioner, officials from Customs, ITBP, the District Industries Centre, and members of the trade association.
More Issues Await Attention
While the IGST issue remains the traders’ primary concern, the association has also urged the government to address other long-pending challenges. These include improving quarantine facilities, strengthening road connectivity between border trade centres, and updating the Trade Import-Export List to meet present-day requirements.
Negi said traders remain optimistic that the ongoing dialogue between the state and central governments will pave the way for a fair and lasting solution. He added that the future course of action would depend on the outcome of the Chief Minister’s meeting with the Union Finance Minister.
For now, traders are pinning their hopes on September 7, viewing the discussions as a crucial step toward reviving and strengthening the historic Shipki La border trade for the long term.
