Businesses urge govt to curb smuggling

It is damaging local industry, discourages legal imports

Our Correspondent December 27, 2016

RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) President Raja Amer Iqbal has urged the government to curb smuggling as it is denting the economy.  Addressing a traders meeting at the chamber premises, Iqbal said, “By curbing smuggling, the country can increase its tax-to-GDP ratio by another 3.9% to 15% within a year.”

He said that there is a need to monitor the transportation on borders as smuggling severely harms the economy of a country in multidimensional ways.

It damages the local industry, discourages legal imports and reduces the volume of revenues collected from duties and levies by the government, the RCCI president added.

In Pakistan the ratio of smuggling goods is high as compared to its neighbouring countries. The revenue growth is already facing a $2.5 billion loss yearly due to smuggling, said Iqbal. Major items like mobile phones, tyres, diesel, tea, plastic, steel sheets, vehicles, auto parts, cigarettes, garments and electronics (home appliances) are among top smuggled goods.

This has put a negative impact on revenues, industrial production, investment and employment generation, he said. Iqbal further added that the government should enhance its measures to monitor cross border trade.

At the same time, it should rationalise the taxation system to attract the influential industrialists to pay taxes.

Published in The Express Tribune, December 27th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.



Rahat Ali | 7 years ago | Reply Even FBR report which has been cited by Tax Reform Commission states that for 11 items ,the duties,taxes evaded during the year is over US$ 3.0 billion in one year Smuggling has to stop and FBR officers are involved in allowing this large scale smuggling
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ