ISLAMABAD, Dec 30: Central Board of Revenue (CBR) Chairman M. Abdullah Yousuf on Thursday said administrative solution had failed to reduce the menace of smuggling causing great loss to the national exchequer.

Talking to the representatives of Gujrat Chamber of Commerce and Industry, he admitted that solution to unabated smuggling was yet to be found. He said smuggling of clothes and second-hand auto-parts was comparatively high.

He said tariff were required to be made compatible to discourage smuggling. He said the government was considering various proposals to remove the weaknesses in the Afghan Transit Trade.

The CBR has already started simplifying its procedures and making them taxpayers friendly. The government would spend $150 million in next three to four years on automation and reforms in the CBR system.

In the next calendar year, the government would establish 12 regional tax offices which would replace the existing income tax circle offices. All the three taxes - income tax, sales tax and central excise duty-would come under one roof.