Sarafa association seeks simplified turnover-based tax system for jewelry sector
The All Pakistan Sarafa Gems and Jewelers Association has proposed a special tax regime for jewelers aimed at simplifying income tax payments and record-keeping procedures for the sector.
President of the association, Qasim Shikarpuri, presented the proposed “Special Procedure for Income Tax 2026” for the jewelry industry.
He said the government could introduce the regime under Section 99C of the Income Tax Ordinance, 2001, which empowers authorities to adopt special tax procedures for specific sectors.
According to Shikarpuri, the objective of the proposed regime is to make the jewelry business simpler, more transparent, and financially stable.
He said the proposed procedure would introduce a clear turnover-based tax system that would help jewelers avoid unnecessary complexities, excessive tax burdens, and administrative harassment.
Under the proposed framework, separate final tax rates have been suggested for goldsmiths, retailers, manufacturers, and bullion dealers.
The association also proposed allowing jewelers to submit simplified tax returns while maintaining stock declarations only in grams or tolas instead of financial value.
Shikarpuri said fluctuations in international and local gold prices make valuation-based stock declarations difficult for the industry.
The proposed regime further suggests that once tax payments are made under the special procedure, businesses should not face normal tax assessments or additional proceedings.
The proposal also includes facilitation measures aimed at promoting banking channels and digital payments within the jewelry sector.
According to the association, the simplified regime would help restore confidence among jewelers while supporting documentation of the economy, broadening the tax base, and improving trust between businesses and the government.
Shikarpuri urged the government, the Federal Board of Revenue, and other relevant institutions to implement the proposed procedure to create a sustainable and business-friendly environment for jewelers across Pakistan.