LAHORE: The Federal Board of Revenue (FBR) has lodged a First Information Report (FIR) against gold jewelers in Lahore after its officials faced resistance during a tax monitoring drive in the city’s major bullion markets.
According to official details, the Regional Tax Office (RTO) Lahore initiated monitoring of gold stock under Section 175 of the Income Tax Ordinance, 2001. The exercise was carried out in prominent jewelry markets to ensure compliance with tax regulations.
However, the situation escalated when traders allegedly obstructed the FBR team from conducting the inspection. The tax officials also reported harassment, prompting the RTO Lahore to register an FIR against the involved jewelers.
Traders Reject FBR Action
Reacting strongly, Qasim Shikarpuri, President of the All Pakistan Sarafa Gems and Jewelers Association, condemned the move and termed it an anti-business action. He argued that the filing of an FIR against traders would further strain relations between the business community and tax authorities.
The association has consistently opposed the enforcement of Section 175, maintaining that allowing tax officials to enter business premises raises serious privacy and operational concerns for traders.
Section 175 Remains Key Dispute
Section 175 of the Income Tax Ordinance has remained a major point of contention between the FBR and gold traders. The provision empowers tax authorities to inspect business premises and verify stock, which jewelers argue could disrupt normal business operations.
Talks Partially Failed
Last month, multiple rounds of negotiations were held between the FBR and representatives of gold jewelers to resolve the issue. While some progress was made, the discussions ended without a comprehensive agreement, with both sides agreeing to continue dialogue.
Talks Set to Resume
Further talks were delayed due to heightened security measures in Islamabad’s Red Zone amid developments related to the Middle East crisis. According to Shikarpuri, negotiations are now scheduled to resume later today.
The outcome of these discussions is expected to be crucial in determining future enforcement of tax monitoring measures in the gold sector.
