President Islamabad Chamber of Commerce and industry (ICCI) Muzzamil Hussain Sabri said that national exchequer was reportedly losing around Rs.120 to 150 billion annually due to smuggling of many items.
He stressed upon the government to pay urgent attention to this serious issue as it was hurting the local industry, discouraging investment and legal imports and causing sufficient revenue loss collected from taxes, duties and levies at the import stage, according to statement issued.
He said a World Bank study has estimated revenue loss of US$ 35 billion to our economy during the nine years period from 2001 to 2009 due to smuggling of Afghan transit trade alone.
He said there was huge smuggling of consumer items like black tea, diesel/POL products, automobiles, tyres etc. besides non-duty paid luxury vehicles from porous borders of Pakistan with neighboring countries.
Muzzamil Sabri said the prevailing structure of taxes and duties on POL products was also encouraging smuggling of these products from neighboring country.
He said the government should consider withdrawing 7.5 percent customs duty, 27 percent sales tax and around Rs.8 per litre Petroleum Development Levy on POL products to discourage smuggling of these products.
The Customs Intelligence and Investigation should be taken more strengthened to create strong deterrence against smuggling, he urged.