Jewellers warn FBR rules hurting gold trade
Pakistan’s jewellers have raised concerns over FBR and EDR regulations, warning that strict enforcement and documentation requirements are disrupting gold market activity and hurting small traders.
The All Pakistan Sarafa Gems and Jewellers Association said new tax and documentation measures have created operational difficulties for gold traders across the country.
In a press statement issued on April 7, the association highlighted multiple challenges emerging from the implementation of FBR and EDR laws.The association said gold traders are facing severe issues due to the imposition of additional taxes and compliance requirements.
It added that procedures related to tax registration and documentation remain complex, making it difficult for small and medium-sized jewellers to operate smoothly.The statement noted that incidents of undocumented transactions and enforcement actions have increased, creating uncertainty in the market. Traders said frequent checks and compliance burdens are discouraging business activity and affecting overall market sentiment.
It added that restrictions on cash transactions are creating hurdles for daily operations, as the gold trade traditionally relies on cash-based dealings. The association said such measures are resulting in financial losses for traders and disrupting supply chains.According to the statement, around 175 jewellers are currently affected by enforcement actions, raising concerns about the scale of implementation and its impact on the sector. The association emphasized that while it does not oppose taxation, the current mechanism is not practical for the industry.
The jewellers’ body urged the government and the Federal Board of Revenue to introduce business-friendly policies that align with ground realities. It called for immediate consultations with stakeholders to address concerns and ensure that regulations do not damage economic activity.Pakistan’s gold market operates largely within the informal economy, with limited documentation and heavy reliance on cash transactions. Efforts by authorities to expand the tax net have intensified in recent years under broader fiscal reforms aimed at increasing revenue collection.
According to the Federal Board of Revenue, Pakistan’s tax-to-GDP ratio remains below 10%, significantly lower than regional peers, prompting stricter enforcement across sectors including retail and precious metals.
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The government has also introduced digital invoicing and documentation requirements to curb tax evasion.However, market participants argue that abrupt implementation without stakeholder engagement risks shrinking business volumes. The association warned that ignoring these concerns could lead to protests, stating that traders reserve the right to respond if their demands are not addressed.
The statement was issued by association president Muhammad Qasim Shikarpuri, who called for balanced policymaking to support both revenue objectives and business sustainability. He said aligning tax laws with industry realities would help stabilize the gold market and support economic activity.