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Pakistan Loses 1000 Billion Rupees Annually to Smuggling, Illegal Trade, and Tax Evasion
Report reveals Pakistan's staggering loss of 1000 billion rupees yearly due to smuggling, illegal trade, and tax evasion across major sectors. Urgent action needed to curb this detrimental trend.
ND
by News Desk
2024-04-16
Pakistan Loses 1000 Billion Rupees Annually to Smuggling, Illegal Trade, and Tax Evasion

A recent international research report has shed light on Pakistan's significant economic loss of 1000 billion rupees annually, attributed to smuggling, illegal trade, and tax evasion across five major sectors.

 

The report identifies the real estate sector as the leading contributor to the loss, with an estimated annual loss of 500 billion rupees in stolen taxes. Additionally, illegal trade in tires and lubricants accounts for a loss of 106 billion rupees, while the pharmaceutical industry suffers a loss of 65 billion rupees annually. The illegal tea trade further adds to the economic strain, with losses amounting to 45 billion rupees. The tobacco sector tops the list, with a staggering loss of 240 billion rupees annually due to illegal trade and tax evasion.

 

Fawad Khan, spokesperson for the advocacy firm Stable Pakistan, emphasized the urgent need for government intervention to address this issue. He highlighted the potential for increased tax collections and reduced budget deficit through measures such as increasing the rate of Direct Payment (DP) and cracking down on illegal trade in key commercial sectors.

 

The report underscores the importance of implementing effective policies and enforcement mechanisms to curb smuggling, illegal trade, and tax evasion, safeguarding the country's economic stability and promoting fair competition in the market.
Tagged:

PakistanEconomy

TaxEvasion

IllegalTrade
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