General Tyre and Rubber Company of Pakistan (GTR) says it will invest around US$200 million to set up a new plant in the Special Economic Zone (SEZ), being established in Faisalabad, Punjab, a location in the China-Pakistan Economic Corridor (CPEC).
But the tyre manufacturer has called on the government to develop effective policies to counter trade-based financial crime challenges, including misdeclaration of tyres’ sizes by importers, under-invoicing and smuggling, especially via the Afghan Transit Trade routes.
Level playing field
“The government should provide us with a level playing field by controlling smuggling, under-invoicing, and ensuring the stability of policies,” managing director of GTR, Hussain Kuli Khan, told journalists in Islamabad.
“If these issues are addressed then we have a huge capacity to create thousands of jobs and generate billions of rupees worth of revenue for the government to help boost economy,” he said.
Smuggling and misdeclaration
In Pakistan, around 35 per cent of the total demand for tyres is met through imports, while smuggling makes up 45 per cent, not only consuming local industries’ hard-earned revenues but also billion of rupees of taxes Khan says.
He added that they have reports as well as visual evidence of importers concealing three or four smaller tyres in larger tyre to avoid paying duty and taxes on all but the largest tyre.
Categories: Trade Based Financial crimes News