KARACHI, May 1, 2026– The Karachi Chamber of Commerce and Industry has backed the monitoring of jewelers’ business transactions by the Federal Board of Revenue, while cautioning against harassment by tax officials.
A delegation of jewelers met KCCI office bearers on April 30 to discuss concerns over the tax authority’s move to deploy Inland Revenue officials at shops and workshops to monitor transactions.
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According to sources familiar with the meeting, the chamber clarified that tax officials are legally empowered to monitor business activities under Section 175 of the Income Tax Ordinance 2001, which grants authorities the power to enter and search premises.
However, the Karachi Chamber of Commerce and Industry stressed that it does not support any unlawful conduct by officials, including harassment under the pretext of monitoring.
The jewelers’ delegation sought the chamber’s support against the deployment of tax officials, arguing that the exercise has created operational hurdles and raised concerns over privacy for both traders and customers.
They said that the presence of officials at business premises was leading to undue interference and, in some cases, alleged misuse of authority, resulting in disruption to normal commercial activities.
KCCI representatives assured the delegation that the matter would be raised with senior officials of the Federal Board of Revenue, including calls to expand the tax base by bringing unregistered jewelers into the formal system.
The meeting took place as a separate delegation of jewelers held talks with the FBR chairman in Islamabad on the same issue.
Previous negotiations between the tax authority and the jewelry sector have failed to resolve the dispute, with the FBR maintaining that powers granted under Section 175 cannot be withdrawn.
The Karachi Chamber of Commerce and Industry reiterated its support for lawful tax enforcement while emphasizing the need to safeguard businesses from undue pressure and ensure a balanced approach to compliance.