MULTAN,June 4th: Over 3.5 million tyres worth Rs.10 billion are being smuggled from India,China, Russia, Japan and Italy via Afghanistan.A number of markets are doing business of smuggled tyres in Dera Ghazi Khan, Multan, Lahore, Ruknee, Dera Ismail Khan.The annual demand of tyres in the domestic market is over 6 million but the local industry is operating with production capacity of only 2.5 million tyres due to influx of smuggled and under-invoiced foreign brands.The smuggling of tyres severely damaging the indigenous tyre industry. Due to lesser production of tyres, these are to be imported into the country, which invites mafia to take control of the trade process. In the guise of Afghan Transit Trade (ATT) the local industry was being marginalised as the traders all across Pakistan bought those smuggled tyres as they cost less. The duty was also evaded by under-invoicing by the local officials. The importers misinform the customs authorities about the actual price by stating it very low, thus evading tax by complicity of the tax authorities.The government should not decrease the duty or tax on tyres. On the contrary, the government should protect the indigenous industry like India. It is worth mentioning that the country is losing billions of rupees in foreign exchange and billions in revenue as the local market currently is flooded by brands coming from all over the world including China, which find their way into Pakistan primarily through under-invoicing and smuggling. An official of the industry said that economic downturn has also taken its toll as the manufacturers planned and executed huge capacity expansion in 2005-06, when it was projected that the country would be producing over half a million cars by 2010-11. He said it is incomprehensible as to why the massive under-invoicing is tolerated by the government. "It is just a matter of finding the right price through Internet," he said and added that the export price fetched by local tyres is another indicator of globally competitive rates.He said that smuggling is conducted mainly due to loopholes in the ATT. He said that there are no quantitative curbs on imports of tyres into Afghanistan although the authorities are fully aware that these imports are meant for Pakistani markets.The population of Afghanistan is less than 20 percent the population of Pakistan while 63 percent of its population lives under poverty levels. Yet its imports are completely disproportionate to its genuine needs. He urged the government to plug the massive loopholes in ATT if it desires the industry to survive, grow, create more jobs, pay more taxes and export goods to earn foreign exchange.