Annually, Pakistan uses approximately 10 million tyres, out of which 65% of the demand in the market is met by illegal or smuggled tyres.
The tyre trade under the Afghanistan-Pakistan Transit Trade Agreement (APTTA) has increased to 205%. Although, the trade carried under APTTA is meant to provide an avenue for Afghanistan to use Pakistan as a conduit for their imports but, due to weak enforcement, the law gets abused when dealers hide 4-5 tyres to pay duty on one tyre against the import of more, causing massive losses to the national exchequer.
Smuggling of tyres is not the only issue faced by the local industry, low Import Trade Price (ITP) values with extensive under-invoicing of imported Chinese tyres in Pakistan is causing huge tax losses to the government while at the same time it is a major obstacle to new investments in the local tyre industry.
https://www.thenews.com.pk/print/841058-rs310b-annual-tax-evasion-by-five-sectors
Govt loses billions on tyre smuggling, low ITP values
