According to authorities, the illegal tobacco trade and smuggled tyres together cost the national exchequer 130 billion rupees a year in lost taxes.
The illicit tyre sector now costs the national treasury Rs. 50 billion yearly as a result of underbilling and smuggling, while the illegal cigarette trade costs the nation Rs. 80 billion annually.
The national exchequer loses more than Rs. 50 billion due to the smuggling of tyres, which has a total estimated worth of over Rs. 300 billion. This poses a serious danger to the local tyre industry’s ability to survive.
One of the main goods being smuggled into Pakistan is tyres, which has a devastating effect on the local economy and results in significant losses to the state coffers.
If the smuggling is reined down, local producers and legal imports may fill the gap, and eventually the government would receive the lawful cash that it urgently needs.
However, the illegal cigarette trade also causes the national exchequer to lose Rs. 80 billion every year. Legal investment in the tobacco business is also at risk, in addition to the nation’s economy.
The market share of illicit cigarettes is growing quickly in Pakistan as a result of the country’s high tobacco taxes and the lack of strong penalties for those participating in illegal commerce. 80 billion cigarettes are sold yearly in Pakistan, according to industry data. In the nation, two out of every five cigarettes are sold illegally.
To read our blog on “Customs confiscate millions of dollars’ worth of expired, smuggled cosmetics,” click here.
