A group of importers has complained to government authorities that the same mafia involved in this tax fraud was denying them their opportunities in the local market.

When taxes are calculated, the weight and the size of the tyres are considered.

Accordingly, for size 4011.10, a 25 per cent or Rs. 175 per kilo tax is levied. It is 15 pc or Rs. 70 per kilo for 4011.20.10 size and 15 pc or Rs. 80 per kilo for 4011.20.90 size.

Imposition of the customs levy takes the invoice value into consideration, and the EIC, PAL and VAT taxes are imposed accordingly.

The state has lost around Rs. 1.2 billion in the period between 2007 and 2014, reports say.