LAHORE: Federal Bureau of Revenue (FBR) has assured that General Sales Tax (GST) will not be levied on jewellers having a shop smaller than 100 square feet and a notification in this regard will be issued during next week.
Assurance was extended by the FBR Senior Chief Sales Tax Javed Memon to a 20-member delegation of the Punjab Sarafa Gems & Jewelery Association that called on him to apprise him about the hardships being faced by the Jewellers and Jewellery business due to taxation policies.
Association’s Chairman Muhammad Ahmad led the delegation which comprised representatives of Jewellers from across the province. Muhammad Ahmad informed the FBR officers that an effort was also made in 1998 to levy GST on this sector which was foiled by the Jewellers through an exemplary unity and protests. The then CBR officials admitted the special status of this business and a fixed tax was levied in consultation with jewelers instead of GST, he added. Muhammad Ahmad said that it is not possible to levy GST on each sale or purchase as majority of jewelers only offer services of designing or polishing. Gold is owned by the consumers while there are many stages of making ornaments. He said that most of the time people come to amend or redesign their old ornaments or just to seek polishing services. He also said that majority of jewelers are not big businessmen especially those sitting in small cities and villages. He said that their community is ready to pay taxes but it is not possible to pay GST on each sale or purchase in the light of above mentioned reasons.
Listening sympathetically, FBR Senior Chief Sales Tax assured the delegation that their submission is well understood by the Board and setting aside the proposal of levying GST on jewelery, a new policy of taxation will be devised excluding jewelers having a shop smaller than 1000 square feet and electricity bill below 50,000 out of GST regime. He assured that new policies will be devised in consultation of the Punjab Sarafa Gems & Jewellers Association and other stakeholders. Chairman Punjab Sarafa Gems & Jewellers Association Muhammad Ahmad thanked the FBR and the Government to resolve this big problem of Jewellery sector which had brought all activities to a stand still.
