Tax Revenue Losses to Tire Smuggling in Pakistan

in Business Risk

The Government of Pakistan is losing up to $80 Million a year due to the smuggling of used tires from India and China.

In 2010, smuggled tires in Pakistan consisted of 20 percent of the total passenger car tire market, while imported tires stood at 37 percent and domestic tires at 43 percent. Smuggled tires made up 52 percent of the light truck market, and  47 percent of the trucks/buses tire market.

The used tires end up in Pakistan because China and India dump scrap materials in bulk in Pakistan.

Source:  Hina Mahgul Rind, “‘Smuggling of tyres causes annual losses worth $80m’,” News International, October 11, 2012.

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