Smuggled Tyres A Multi-Million $ Problem For Pakistan

Tyre smuggling costs the Pakistan Government 1.25 billion Rupees (US$ 21.73 million) a year in lost import duty and sales tax. An estimated one million tyres are illegally imported, many originating in Japan and India.

Last  year the Government reduced import duty on truck tyres from 25 per cent to 10 per cent in an attempt to curb smuggling. This reduced the number of illegally-imported truck tyres, but the smugglers then focused on other  tyres, still included in the high-duty tariff. Kalid Shafi, chairman of the All Pakistan Tyres Importers & Wholesalers Association, warned that, without further Government action, smuggled tyres could take 60 per cent of  the market.