ISLAMABAD: Federal board of Revenue (FBR) has taken notice of increase in the smuggling volume of tyres in the country and decided to devise a comprehensive strategy in the tax policy in order to discourage the smuggling against the legal import of tyres.
As per sources, rise in smuggling of tyres is due to discouraging duty and taxes policies from the government side which increases the illegal import of the tyres. At least 300pc increase has been noticed by the board in the smuggling of tyres where the legal import of trucks and buses’ tyres in the country is only 22pc while 76pc of country’s demand has been met through smuggling.
Meanwhile the legal import of tyres of the light trucks and vans is 22pc while local production is 11% and 59% is smuggled into the country, sources said.
Sources said that at least Rs3,871 duty and taxes are imposed on the import of trucks and buses’ tyres which include 15pc customs duty, 2pc additional duty, 15% regulatory duty, 17pc sales tax, 3pc additional sales taxes, 6pc withholding taxes, 2pc extra taxes which solely discourages the legal import of tyres into the country while smuggled tyres for these trucks and buses cost only Rs770, sources confirmed.
Meanwhile, the board has decided to consult with all stakeholders in this regard to devise a comprehensive strategy in order to discourage the smuggling of tyres into the country.