The Federal Board of Revenue (FBR) has intensified its campaign to combat tax evasion with a sweeping nationwide operation targeting jewellers who remain outside the formal tax net or underreport their actual financial capacity. This development marks a significant move in Pakistan’s broader strategy to strengthen fiscal compliance and bring more transparency into high-value business sectors.
According to officials, the authority has started issuing notices to jewellers across major cities including Islamabad, Rawalpindi, Faisalabad, and Multan. Figures reveal that out of approximately 57,000 jewellers operating nationwide, only around 20,000 are registered with the tax authorities. More strikingly, just 10,000 among the registered jewellers have filed their tax returns, exposing the scale of non-compliance within the sector.
In Islamabad alone, discrepancies have surfaced in the financial records of at least 50 jewellers. Officials reported that their declared returns failed to match the scale of their businesses, shop sizes, transactional flows, and overall standards of living. This mismatch has become a key indicator of potential tax evasion, prompting further scrutiny.
Thousands of other jewellers across the country are believed to be operating outside the tax framework entirely. To address this, the FBR is expanding its issuance of notices, requiring explanations from traders whose financial reporting appears inconsistent or absent. Officials emphasized that the operation is evidence-driven, noting that no trader or industrialist would face action without proper cause. However, confirmed cases of tax evasion will be met with strict legal and regulatory measures.
The FBR reiterated that Pakistan’s economic sustainability hinges on fair tax contribution. “If every citizen pays their due taxes honestly, the country’s economy can run more efficiently,” officials remarked. The authority’s long-term goal is to expand the tax base, ensuring that all business sectors, including high-value industries like jewellery, contribute proportionately to national revenue.
This crackdown is part of a larger campaign that reflects the government’s ongoing commitment to reducing fiscal loopholes and tightening oversight in business ecosystems that have traditionally evaded regulation. With growing scrutiny on sectors displaying visible wealth but minimal tax contribution, the jewellery market has now become a focal point for enforcement.
The move underscores the FBR’s intent to introduce greater transparency and accountability, not only to secure immediate revenue gains but also to build a culture of compliance. The jewellery sector, often associated with cash-heavy transactions and undervaluation, has long posed challenges for tax authorities. By bringing it into the net, the FBR aims to set an example that no segment of the economy will be allowed to operate beyond regulatory oversight.
As Pakistan navigates its economic challenges, initiatives like these are designed to boost state revenue, curb irregularities, and foster equitable participation in the financial system. For the FBR, success in this operation will serve as a crucial benchmark in demonstrating its ability to enforce taxation in industries historically resistant to formal compliance.
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