FBR and jewellers agree to strengthen tax compliance and establish liaison representatives at Regional Tax Offices
KARACHI: Gold traders across Pakistan have been advised to pay 30% higher income tax than the previous year as part of efforts to improve tax compliance following discussions between the jewellery industry and the Federal Board of Revenue (FBR).
The development follows a meeting between senior FBR officials, including Minister of State for Finance Bilal Azhar Kayani, and representatives of the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
FBR, Jewellers Hold Tax Compliance Talks
Speaking after the meeting, APSGJA President Qasim Shikarpuri described the discussions as positive and productive, saying both sides held detailed consultations on taxation issues affecting the country’s gold and jewellery sector and agreed to strengthen cooperation.
Under the decisions reached, the association will nominate two representatives for each of Pakistan’s 17 Regional Tax Offices (RTOs). These representatives will serve as liaison officers between the FBR and the jewellery trade to facilitate communication and help resolve tax-related matters.
Traders Assured of Cooperation
According to Shikarpuri, FBR officials assured the business community that traders complying with tax laws would not face unnecessary harassment and would receive full cooperation from the tax authorities.
He urged jewellers whose tax returns do not accurately reflect their assets to revise their filings promptly. Traders who had submitted nil tax returns were also advised to correct their declarations, while all eligible taxpayers were encouraged to pay advance tax within the prescribed timelines.
30% Higher Tax Payment Advised
Shikarpuri further advised traders who have already filed accurate tax returns to comply with FBR directives by paying 30% more income tax than the amount paid in the previous year.
He stressed that all tax matters should be handled transparently and strictly in accordance with the law, urging traders to avoid making unofficial or “under-the-table” payments.
Instead, he encouraged members of the jewellery community to seek guidance through the association’s nominated representatives when dealing with tax-related issues.
Outlook
Shikarpuri expressed hope that stronger coordination and mutual trust between the FBR and the business community would help resolve longstanding issues and improve tax compliance across Pakistan’s gold and jewellery sector.
The initiative is expected to enhance communication between tax authorities and traders while supporting the government’s broader efforts to broaden the tax base and increase revenue collection.