Jewellers association proposes ‘special tax scheme’ for 2026

KARACHI: The All Pakistan Sarrafa Gems and Jewellers Association has proposed a dedicated tax framework for the jewellery trade, calling on the government and the Federal Board of Revenue to implement it without delay.

Presenting the “Special Procedure for Income Tax 2026” in Karachi, association president Qasim Shikarpuri said the scheme has been framed under Section 99C of the Income Tax Ordinance 2001 and is designed to make taxation for jewellers simpler, more transparent and more stable.

Under the proposed framework, separate final tax rates would be set for goldsmiths, retailers, manufacturers and bullion dealers. Jewellers would be allowed to file straightforward returns and would only be required to declare stock in grams or tolas, removing the obligation to report monetary valuations — a provision that acknowledges the frequent price fluctuations in the gold market. Once tax is paid under the scheme, no further normal assessment or additional proceedings would follow.

The framework also includes measures to encourage banking channels and digital payments within the sector. Shikarpuri said the scheme would restore confidence in the jewellery trade while simultaneously helping to document the broader economy, expand the tax net and build trust between the government and the business community.

He urged the government, the FBR and all relevant institutions to notify the special procedure at the earliest so that jewellers across the country could operate in a sustainable and business-friendly environment.

Copyright Business Recorder, 2026