The Federal Board of Revenue (FBR) has launched a major crackdown on jewelers, compiling data on more than 60,000 businesses across Pakistan to curb widespread tax evasion in the sector.
According to reports, just 21,000 jewelers nationwide are registered with the tax authority, and only 10,524 have submitted returns. Many jewelers are allegedly underreporting their earnings to avoid taxes, prompting the FBR to intensify enforcement measures.
As part of the first phase of the FBR crackdown on jewelers, a list of 900 businesses in Punjab has been prepared for scrutiny, covering Lahore, Rawalpindi, Faisalabad, and Multan. Authorities have identified glaring inconsistencies between the declared income of certain jewelers and their visible shop size, trading activity, and lifestyle indicators.
Notices are now being issued to under-declarants, demanding explanations and urging compliance. Officials emphasized that action will be evidence-based. “We will not issue notices without reason. If everyone contributes fairly, the country can function properly,” one FBR representative stated.
The jewelry market is already under the spotlight as gold prices surge again after a brief decline, drawing more attention to trading volumes and profit margins within the sector.