Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has suggested reducing the tariff rates on smuggling-prone items to the lowest level to curb smuggling. The FPCCI observed that the total elimination of smuggling only through administrative measures at the borders was difficult and the remedy lies in reducing incentive for smuggling by reducing tariff rates.
Smuggling is eating vitals of Pakistan economic fabrics and needs to be curbed through fiscal and administrative measures.
It renders industrial products uncompetitive and discourages legal imports thus make colossal losses to the trade, industry and government exchequer.
Despite efforts of Federal Board of Revenue (FBR) with limited resources cannot control smuggling form boarders of Iran and Afghanistan.
This will result in higher government revenue, provide impetus to local trade/ industry and generate employment opportunities.
The list of smuggling prone items with FBR should be revised in consultation with FPCCI, it urged.
In the meantime total impact of duties and taxes on smuggling prone-items including ceramic tiles, porcelain tiles, coffee, tea, spices, electrical appliances and machinery, POL products, tyres, polyethylene and P.P granule, steel products, sulphonic acid and mobile phones be reduced to the extent where the incentive for their smuggling is removed. FPCCI further suggested that the raw materials under SRO 565 be allowed to import at zero percent duty.