KARACHI: Pakistan Tyre Importers and Dealers Association (PTIDA) has demanded immediate removal of regulatory duty on tyres.
A delegation of PTIDA visited Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and apprised of various slabs of regulatory duty on tyres, which in effect is encouraging smuggling of tyres and significant revenue loss to the government.
PTIDA informed that there was 205 percent increase in tyre import under Afghan Transit Trade, which ultimately is smuggled into Pakistan.
“Around 86 percent demand of truck tyres, 69 percent of light truck and van tyres and 69 percent of passenger car tyres in Pakistan is met by smuggled tyres,” a statement issued by FPCCI noted.
This situation is not only hurting the legal trade in Pakistan but also depriving the national exchequer of valuable revenue.
Zakaria Usman, Convener of the FPCCI Advisory Council on budget, after listening the problems and issues faced by the tyres said that if the manufacturing was over 70 percent locally, only then regulatory duty may be applied to protect the local industry; whereas when local demand is met with import the regulatory duty may not be applicable.
“Regulatory duty is hurting the business of tyres import through legal channel and should be immediately removed,” Usman said.