Karachi, April 1, 2026 – Negotiations between the Federal Board of Revenue (FBR) and the All Pakistan Gems and Jewelers Association (APGJA) over the controversial Section 175C of the Income Tax Ordinance, 2001 ended without agreement on Wednesday, raising the likelihood of enforcement action and nationwide protests by jewelers.
APGJA President Qasim Shikarpuri confirmed that three rounds of talks were held with FBR Chairman Rashid Mehmood Langrial, but failed to yield any breakthrough. “Despite detailed discussions, no consensus could be reached,” he said, adding that the association remains firmly opposed to the new compliance mechanism.
The primary point of contention is Section 175C, introduced through the Finance Act, 2025, which empowers tax authorities to deploy Inland Revenue officers at business premises for real-time monitoring. The law allows officials to oversee production, supply of goods, services, and unsold stock to assess tax liabilities more effectively.
The APGJA has strongly rejected the move, terming it intrusive and harmful for business operations. According to Shikarpuri, jewelers are already fulfilling their tax obligations under existing laws and do not require physical monitoring at their shops. “We cannot accept the deputation of tax officials inside our business premises under any circumstances,” he stated.
Despite repeated assurances from the jewelry sector regarding compliance, the FBR has refused to withdraw or suspend the implementation of Section 175C. Officials believe the measure is necessary to broaden the tax base and curb underreporting in cash-intensive sectors such as gold and jewelry.
The deadlock has heightened tensions, with the APGJA warning of a strong response if enforcement begins. The association is currently deliberating a protest strategy, which may include shutter-down strikes across major markets.
However, Shikarpuri expressed cautious optimism that dialogue could still resume, urging authorities to find a balanced solution that ensures tax compliance without disrupting legitimate business activities.