PKMA attributes rising smuggling to huge taxation

Chairman of Pakistan Kiryana Merchants Association (PKMA), Haji Nadeem-ur-Rehman has expressed concern over negative impact of regulatory duties and huge taxation which has led to a huge increase in smuggling and causing heavy financial losses for the importers.

He pointed out that due to government policies imports remained only 25 percent of total demand. He urged Prime Minister, Imran Khan to protect the import sector from destruction, saying smugglers are supplying goods to markets across the country, including Karachi, which include cashew nuts, almonds, chilies, coconuts, white, black pepper, cloves and other items.

"These items have not been imported for several months, yet these items are readily available in the markets. Smugglers are selling goods for less than the import cost," he said.

As a result, importers are losing millions of rupees on the one hand, while the national exchequer, on the other hand, is facing huge losses in terms of revenue. Haji Nadeem-ur-Rehman also pointed out that the government has closed trade with India, yet the markets are full of smuggled Indian goods.

However, in the guise of Afghan transit trade, smuggled goods are being supplied without any tax payment to the markets across the country, including Karachi, which is an important cause of further worsening the ongoing economic crisis in the country. PKMA chairman appealed to Prime Minister Imran Khan to direct effective measures to curb smuggling, while expressing personal interest and to reduce regulatory duties and taxes on imports legally to meet domestic demand.