KARACHI: The All Pakistan Sarafa Gems and Jewelers Association has proposed a special income tax regime for the jewelry sector aimed at simplifying tax payments, documentation, and record-keeping procedures for jewelers across Pakistan.
Association President Qasim Shikarpuri presented the proposed “Special Procedure for Income Tax 2026” for the jewelry industry and urged the government to introduce the framework under Section 99C of the Income Tax Ordinance, 2001.
According to the proposal, the special regime would establish a simplified turnover-based tax system designed to reduce compliance complexities, excessive tax burdens, and administrative difficulties faced by jewelers.
Shikarpuri said the proposed framework would help make the jewelry business more transparent, stable, and business-friendly while improving confidence within the sector.
Under the suggested procedure, separate final tax rates have been proposed for goldsmiths, retailers, manufacturers, and bullion dealers operating in the jewelry trade.
The association has also recommended simplified tax return filing requirements and proposed allowing stock declarations to be maintained only in grams or tolas instead of monetary value.
According to industry representatives, sharp fluctuations in local and international gold prices make valuation-based stock declarations difficult and impractical for businesses.
The proposed regime further recommends that taxpayers operating under the special procedure should not face normal tax assessments or additional proceedings once taxes are paid under the scheme.
The association also suggested facilitation measures to encourage the use of banking channels and digital payments within the jewelry and bullion sector.
Shikarpuri said the simplified tax framework could support economic documentation, broaden the tax base, and improve trust between businesses and the government while creating a sustainable environment for the jewelry industry.
He urged the government, the Federal Board of Revenue, and other relevant institutions to implement the proposed regime in the upcoming fiscal year.
