General Tyre: Govt urged to act against smuggling, under-invoicing
Company says illegal practice costing economy billions.
KARACHI:
General Tyre and Rubber Company of Pakistan Chief Executive Officer Shahid Hussain has called on the government to take action against unchecked under-invoicing of tyre imports and smuggling.
Speaking at the launch of the new ‘Euro Klass’ car tyres on Friday, he said the economic ills are not only undermining legitimate local businesses but are also costing the national exchequer billions in lost revenues.
“While smuggling and under-invoicing are rampant, the government is being deprived of approximately Rs7 billion annually on tyres alone due to evasion of duties and taxes,” he added.
Hussain asserted that under-invoiced imports and smuggling account for 57 per cent of local sales of passenger car tyres, 85 per cent of light truck tyres and 97 per cent of truck and bus tyres.
However, he said that despite stiff competition from the smuggled products, the company has built a sizeable market share. Hussain recalled that the company has invested almost Rs1.5 billion in research and capacity building in recent years.
He said that in 2005 Indus Motor Company and Honda Atlas Cars asked General Tyre to develop a world-class 15-inch tyre that could meet international standards and pass the final test in Japan. “We accepted the challenge and with Continental’s help, our tyre Euro Star got accepted by Japan,” he said. “That was the beginning of our move towards the modern Euro series of tyres,” he added.
General Tyre Chairman General (Retd) Ali Kuli Khan said that his firm has survived competition from under-invoiced imports and smuggled tyres over the last 34 years due to commitment and dedication of the employees.
The new tyres, Euro Klass, have been made with the help of Continental AG, one of the leading tyre producers of the world. Dr Willi Flamm, Continental’s representative on the board of directors of General Tyre, said that Euro Klass tyres are not only suitable for Pakistan’s roads, but could also be used across the world.
Published in The Express Tribune, February 26th, 2011.
General Tyre and Rubber Company of Pakistan Chief Executive Officer Shahid Hussain has called on the government to take action against unchecked under-invoicing of tyre imports and smuggling.
Speaking at the launch of the new ‘Euro Klass’ car tyres on Friday, he said the economic ills are not only undermining legitimate local businesses but are also costing the national exchequer billions in lost revenues.
“While smuggling and under-invoicing are rampant, the government is being deprived of approximately Rs7 billion annually on tyres alone due to evasion of duties and taxes,” he added.
Hussain asserted that under-invoiced imports and smuggling account for 57 per cent of local sales of passenger car tyres, 85 per cent of light truck tyres and 97 per cent of truck and bus tyres.
However, he said that despite stiff competition from the smuggled products, the company has built a sizeable market share. Hussain recalled that the company has invested almost Rs1.5 billion in research and capacity building in recent years.
He said that in 2005 Indus Motor Company and Honda Atlas Cars asked General Tyre to develop a world-class 15-inch tyre that could meet international standards and pass the final test in Japan. “We accepted the challenge and with Continental’s help, our tyre Euro Star got accepted by Japan,” he said. “That was the beginning of our move towards the modern Euro series of tyres,” he added.
General Tyre Chairman General (Retd) Ali Kuli Khan said that his firm has survived competition from under-invoiced imports and smuggled tyres over the last 34 years due to commitment and dedication of the employees.
The new tyres, Euro Klass, have been made with the help of Continental AG, one of the leading tyre producers of the world. Dr Willi Flamm, Continental’s representative on the board of directors of General Tyre, said that Euro Klass tyres are not only suitable for Pakistan’s roads, but could also be used across the world.
Published in The Express Tribune, February 26th, 2011.