The Central Board of Revenue (CBR) is examining a list of 100 major smuggling-prone items for reducing customs duty on their import in 2005-06 budget. The comparison of Afghanistan and Pakistan tariffs structure shows that cumulative incidence of taxes on imported goods is much higher in Pakistan as compared to tariff in Afghanistan, which is a major cause of smuggling. The CBR is trying to identify items where there is a handsome gap in tariffs, which lures Afghan importers to import these goods and subsequently sell them to Pakistani buyers, fetching high prices.
The CBR will reduce duty on certain items keeping in view the policy to protect the domestic industry. The analysis said that Afghanistan is charging duty from 5 percent to 10 percent on most of these items, whereas Pakistan has levied higher rate of duty on the same.
This has resulted in large-scale smuggling of these commodities from Afghanistan.
THE MAJOR ITEMS PRONE TO SMUGGLING ALSO INCLUDE BANNED ITEMS: According to a list compiled by CBR, most smuggling-prone items include: artificial beads, artificial jewellery, audio/video cassettes, auto parts, ball bearings, betel-nuts, bicycles, binoculars, blades, blankets, boot polish, brake oil, buttons, camera films, car cassette players, carpets - synthetic, catheters, CDs, mobile chargers, cigarette lighters, cigarette paper, cigarettes, combs, cordless telephone sets, cosmetics, diesel, dress buttons, dry battery cell, dry colours, dried milk, electric bulbs and tube lights, electric combination switches, electric generators, electric light for vehicles, electric meters, fabrics, fire crackers, flowers (plastic), generators, ghee, gold, grease, hair brushes, iron & steel structures, iron rim, iron scrap, jackets, juicers/blenders/grinders, lanterns, lighting/electric cables, liquor, lubricating oils/motor oils, microphones, milk powder, nail cutters, optical glasses, ovens, padlocks and door locks, pencils - colour, pencils/ball points, perfumes/spray, plastic pipe, plastic tapes, plastic/accessories, pliers/screw wrenches/pipe, printing ink, printing papers, relay, school bags, sewing machines, shampoos, shawls (ladies), shoe polish, shoes (ladies), silver, soap, socks, stapler pins, stationery items, steel nails, sweaters, tea, television sets, tissue paper, tobacco pan, tools, tooth paste/brushes, torches, toys - battery operated, tube lights starters, tyres, umbrellas, vacuum flasks, wall clocks, watches, water pumps, wrenches and wrist watches.