The Federal Board of Revenue (FBR) has registered a First Information Report (FIR) against gold jewelers in Lahore following a confrontation during a tax monitoring operation in the city’s major bullion markets.
According to official details, the Regional Tax Office (RTO) Lahore launched an exercise to monitor gold stock under Section 175 of the Income Tax Ordinance, 2001. The drive targeted prominent jewelry markets to ensure compliance with tax regulations and documentation requirements.
The situation escalated when traders allegedly resisted the inspection process and obstructed FBR officials from carrying out their duties. Tax authorities also reported incidents of harassment during the operation, prompting RTO Lahore to lodge an FIR against the jewelers involved.
The move has drawn strong criticism from the trading community. Qasim Shikarpuri, President of the All Pakistan Sarafa Gems and Jewelers Association, termed the action anti-business and warned that such steps could further damage trust between traders and tax authorities. He maintained that registering criminal cases against business owners would complicate ongoing efforts to resolve disputes.
The association has consistently opposed the implementation of Section 175, arguing that allowing tax officials access to business premises raises serious concerns over privacy, security, and disruption of commercial activities.
Section 175 of the Income Tax Ordinance remains a key point of friction between the FBR and gold traders, as it grants authorities the power to inspect premises and verify stock levels—powers that jewelers say are excessive and intrusive.
Efforts to resolve the dispute through dialogue have so far yielded limited results. Multiple rounds of talks were held last month between FBR officials and representatives of the gold trade, but no comprehensive agreement was reached, although both sides agreed to continue negotiations.
Further discussions were delayed due to heightened security arrangements in Islamabad’s Red Zone amid regional tensions linked to the Middle East crisis. However, according to Shikarpuri, talks are now expected to resume, with both sides aiming to find a workable solution.
The outcome of these negotiations will be critical in shaping the future enforcement of tax monitoring measures in Pakistan’s gold sector.
