| Smuggling Impact on International Business | | | | The cost of per unit tyres also increased in the |
| | | | | overall market and the 5 per cent duty also rose |
| Currency is also smuggled from Pakistan to other | | | | and, the decline in the value of Pakistani currency |
| countries. It happened because of the political | | | | added more different duties on tyres that |
| situation and some other aspects. Some dealers | | | | included import duty, withholding tax, and, sales |
| were getting one dollar at Rs80 from the central | | | | tax. |
| bank and selling at Rs82-83 in the Peshawar | | | | |
| market. A huge number of Pakistani and Afghan | | | | Only way out of this impasse is to cut import |
| currency dealers are buying dollars in large | | | | duty on truck tyres and government should |
| quantity from Peshawar market and are | | | | continue to charge sales tax. because of this |
| smuggling it into Afghanistan. Almost 4-5 million | | | | truck tyre would die down by Rs1,000. |
| dollars per day are being smuggled to Afghanistan. | | | | |
| Rising demand of the dollar has further increased | | | | 90 per cent of car tyres are also smuggled into |
| its value against other currencies. Because of this, | | | | the country because the import tariff on tyres is |
| the State Bank had stopped the distribution of | | | | 35 per cent plus withholding tax and sales tax. |
| the dollar to the trading companies. | | | | |
| | | | | The regional manufacturer does not have the |
| Federal Investigation Agency (FIA) has already | | | | ability to fulfill even 25 per cent car tyre demand |
| arrested owners of many major exchange | | | | of the country. The duty protection is simply |
| companies, as well as the market leader, Khanani | | | | encouraging smuggling. |
| & Kalia, on smuggling of millions of dollars in a | | | | |
| foreign country. | | | | LPG smuggling from Iran is also hurting the local |
| | | | | industry of Pakistan.Local industry is being |
| Truck tyres are also smuggled on Pak Afghan | | | | deprived almost 30 percent share of their |
| border because of the difference between the | | | | business because of the smuggling of LPG from |
| cost to the import tyre and smuggled tyres. | | | | Iran. That is also depriving the national exchequer |
| Smugglers get Rs3000 to 5000 a large incentive | | | | from billions of rupees in term of taxes. |
| to import this item through illegal channel. | | | | |
| | | | | OGRA (oil and gas regulation authority) should |
| The price variation between a smuggled truck | | | | take the serious action to stop the smuggling of |
| tyre and imported one is Rs3000 to 5000. | | | | LPG from Iran. Because unabated smuggling of |
| Smugglers bear an expenditure of around Rs1000 | | | | LPG is also creating hurdles in the development of |
| per tyre that covers traveling cost and bribe they | | | | the market and it also effect the direct foreign |
| pay for secure entry. | | | | investment sector. |
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