Pakistan jewellers propose special income tax regime to simplify taxation

The All Pakistan Sarafa Gems and Jewellers Association has proposed a “Special Procedure for Income Tax 2026” for the jewellery sector aimed at simplifying taxation and improving transparency for businesses across the country.

Association President Qasim Shikarpuri said the proposed framework, introduced under Section 99C of the Income Tax Ordinance 2001, is designed to create a simpler, more stable and business-friendly tax environment for jewellers.

Speaking in Karachi, Shikarpuri said the system would provide a straightforward turnover-based tax regime, reducing complexity, excessive tax burdens and harassment faced by traders in the sector.

Under the proposed framework, separate final tax rates would be set for goldsmiths, retailers, manufacturers and bullion dealers. Jewellers would also be allowed to file simplified tax returns.

The proposal further states that inventory would be declared on the basis of weight, such as grams or tolas, and businesses would not be required to disclose the financial value of stock due to fluctuations in gold prices.

According to the association, taxpayers covered under the system would not face normal reassessment procedures or additional action after payment of the prescribed tax. The framework also includes incentives to encourage the use of banking channels and digital payments.

Shikarpuri said the proposed system would help restore confidence within the jewellery community while supporting efforts to document the economy, expand the tax net and strengthen trust between the government and the business sector.

The association called on the government, the Federal Board of Revenue and relevant authorities to immediately implement the special tax procedure to provide jewellers nationwide with a sustainable and business-friendly environment.