KARACHI: The local tyre and rubber industry has urged Finance Minister Ishaq Dar to take notice of huge under invoicing in import of different sorts of tyres which has been depriving the government of huge revenue and adversely affecting the local production.
As per reports, the industry believes that action against import of under invoiced tyres and increase in Import Trade Price (ITP) by the FBR will bring forth many benefits including generating revenue of approximately Rs 5,000 million annually.
The under invoicing in tyres being imported from China is being considered as a great threat to the national industry and the economy. The FBR was directed by Finance Minister recently to take appropriate action against the practice but the authorities concerned has not yet taken any action in this regard.
It is to be noted that the local rubber and tyre industry had written to the Finance Minister regarding heavy under invoiced import of tyres which has been robbing the government of revenue and affecting the local tyre industry to the extent of its survival. The Finance Minister promptly ordered appropriate action, but the industry is yet to see results of the ‘action’.
The industry urged the Finance Minister to increase the present level of import trade prices on tyres/tubes by at least 50 percent in case of all imports from China and by 40 percent on imports from elsewhere. ‘Unnecessary delay in rectifying the heavily under invoiced ITP by the FBR is depriving the country of much needed revenue. The importers are getting tyres cleared in “others” category to pay less duty. The number of such tyres has grown to almost half a million, causing a great loss to the country.
Smuggled and under-invoiced tyres account for approximately two-third of the market share against the minimal one third share of the local tyre industry.
The industry is of the opinion that the government attention to the illegal traders would help generate $ 80 million revenue per year besides boosting the local industry.
