Jewellers continue protest against Sec 175C of tax law
KARACHI: Gold and silver traders and jewellers continued their protest against section 175C on Tuesday, keeping major markets closed across the city against, what they described, “forced tax collection, harassment and shop closures” by the Federal Board of Revenue (FBR).
Addressing gatherings during the shutdown at the Liberty Jewellers - Tariq Road, traders said a “blind law” had been imposed on the jewellery sector without consultation. They warned that sealed shops would not reopen until the action was reversed, adding that lawful businesses were being subjected to pressure and uncertainty.
Representatives of traders’ bodies said the jewellery sector includes both small shopkeepers and large businesses, yet all were being treated alike under Section 175C. They alleged that FBR teams were sealing shops, counting cash and demanding large sums, creating fear in the markets. Several shopkeepers said their premises were sealed after they refused to make illegal payments.
An association leader said the government was attempting to recover Rs650 billion national revenue shortfalls by targeting jewellers and the gold industry. He warned that if the issue was not taken up on a proper forum through dialogue, traders could proceed with an all-Pakistan strike, calling the situation unacceptable under any circumstances.
Explaining the disputed provision, traders said section 175C allows the FBR to station its officials inside shops for 15 to 30 days to monitor daily sales and verify tax declarations. Jewellers said they were open to dialogue and a settlement but strongly opposed the physical placement of officials inside their premises. They also objected to the reopening and reassessment of previous years’ tax records when a new financial year was approaching.
Traders stressed that they were not against taxation. They said they had paid taxes in the past, were paying them now, and would continue to do so. They added that they were even willing to negotiate higher tax rates or increase their tax contribution in the coming fiscal year, but rejected what they termed illegitimate demands by field officers and the continued enforcement of Section 175C.
Tensions escalated after what traders described as an unjustified FBR raid on Liberty Jewellers, which led to an immediate shutdown of jewellery shops along the road. Following the incident, an emergency meeting of all Karachi jewellers’ associations was held on Monday, June 15, 2026, at the JAGTAP Association office in Saddar.
The meeting, chaired by Muhammad Qasim Shikarpuri, president of the All Pakistan Sarafa Gems and Jewellers Association, unanimously decided that all gold markets in Karachi would remain completely closed on Tuesday, June 16, in protest against what participants termed “oppressive” actions by the FBR.
As part of the protest, all jewellers’ associations on Tariq Road announced the establishment of a protest camp and a peaceful demonstration to highlight traders’ grievances against the FBR’s actions.
Leaders of the All Pakistan Anjuman-e-Tajiran and the Sindh Tajir Ittehad stressed unity among traders across sectors and regions, saying collective action had already been demonstrated and would be expanded if needed. They also praised the organizational role of the All Pakistan Gem Merchants and Jewellers Association.
Traders further complained that the 2026–27 federal budgets offered no relief to the gold sector, continuing the pattern seen in 2025–26, while relief had been extended to other traders and non-filers. They demanded the immediate suspension of section 175C, removal of FBR officials from shops, and resolution of the issue through mutual consultation.
They warned that if meaningful talks do not take place, the protest will be expanded into a complete nationwide commercial shutdown from Karachi to Kashmir.
Copyright Business Recorder, 2026