Tax Reform Commission Recommends Measures to Counter Petroleum Smuggling

Tax Reform Commission Recommends Measures to Counter Petroleum Smuggling

The Reform and Revenue Mobilization Commission (RRMC) has proposed the implementation of a marking and monitoring system in the petroleum sector to combat the rampant smuggling of petroleum products in Pakistan.

In its recommendations for the 2023-2024 budget, the RRMC highlighted the thriving black market for fuel and emphasized the need to curb this illegal activity.

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The commission specifically pointed out the issue of border smuggling, highlighting the case of smuggling at the Chaman Border. It identified tribal threats and the use of sandwiching techniques to facilitate smuggling operations. To address this problem, the RRMC suggested the establishment of a facility at the Chaman border equipped with advanced cameras and scanning technology. This facility would scan containers and ensure the integrity of seals configured with active RFID or other advanced solutions.

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To minimize risks and enhance efficiency, the RRMC proposed making the presence of Customs officials in high-risk areas as inconspicuous as possible. It recommended the establishment of multiple Command & Control Centers in major cities, enabling the random assignment of clearance processes. This would help prevent any potential collusion between smugglers and Customs officials by introducing a more secure and transparent clearance system.

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The RRMC’s recommendations aim to strengthen control and surveillance measures to combat petroleum smuggling. By implementing a robust marking and monitoring system and enhancing security at the Chaman border, the government can effectively crack down on the black market and prevent revenue losses. These proposed actions are essential for promoting a fair and transparent petroleum sector while protecting the interests of the country’s economy and lawful businesses.

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