A fresh round of talks between the Federal Board of Revenue and the All Pakistan Gems and Jewelers Association ended without any progress on Wednesday, leaving both sides stuck on a key tax issue.
The disagreement centres on Section 175C of the Income Tax Ordinance, a new provision that allows tax officials to sit inside business premises and monitor activity such as stock levels, supply chains and sales in real time.
For the FBR, this is part of a wider effort to improve tax collection in sectors that largely operate on cash and remain outside the documented economy. But jewellers see it very differently.
Industry representatives say the move would interfere with daily business and damage trust between traders and authorities. APGJA President Qasim Shikarpuri made it clear that allowing officials inside shops is not something the sector is willing to accept.
Despite three rounds of discussions with FBR Chairman Rashid Mehmood Langrial, neither side has been able to find common ground.
Traders warn of strong reaction
With talks going nowhere, tensions are starting to rise. Jewellery traders are now considering protest options, including shutter-down strikes in major markets across the country.
Such a move could disrupt business activity and add pressure on the government, which is already trying to improve revenue collection.
The push for stricter enforcement follows the government’s broader direction under Shehbaz Sharif to bring more sectors into the tax net and reduce reliance on undocumented transactions.
Still, the situation is not completely closed. Both sides have hinted that discussions could resume if there is room for a middle ground.
Shikarpuri said the association is open to further talks, but only if a solution is found that ensures tax compliance without hurting legitimate businesses.
For now, the deadlock continues, with the risk of protests hanging over the market.
