Tyre industry demands inclusion in ITP valuation discussions

KARACHI: The local tyre industry has expressed concern over not being consulted on the recently issued ITP valuations VR-1958 & VR-1959, dated January 17, 2025.

The industry views this exclusion as a setback for local manufacturers, urging authorities to consider their input in future valuation processes.

Hussain Kuli Khan, CEO and MD of GTR Tyres, addressed the issue in a letter to the Director General of Customs Valuation, stating: "As a local tyre producer and one of the major stakeholders in the industry, we wish to highlight that in light of the recent ITP valuation, we were unfortunately not consulted. This lack of consultation is concerning and undermines the contributions of local manufacturers."

He emphasized that the local tyre industry meets 80% of the country’s demand, supplying both Original Equipment Manufacturers (OEMs) and the replacement market. "This contributes significantly to saving foreign exchange, creating employment, and increasing tax revenue for the government exchequer," Hussain noted.

He further highlighted that local manufacturers had previously been part of the consultation process, stating: "As local tyre manufacturers, our input is also vital in setting up ITP values, and your good office used to invite GTR along with different stakeholders. But unfortunately, in the last two valuation meetings, we were not contacted."

Hussain urged the Customs Valuation authorities to re-engage local manufacturers in future discussions, adding: "We strongly urge you to take us in confidence and ensure that our feedback is also taken into account during such meetings."

In his letter, he formally requested a meeting with the DG Customs Valuation to discuss industry concerns and explore measures to support local tyre manufacturers in future valuation processes.