The Federal Tax Ombudsman (FTO) has restrained the Federal Board of Revenue (FBR) from taking any coercive action against jewellers under the Anti-Money Laundering Act (AMLA), 2010, until a formal Standard Operating Procedure (SOP) is developed by the tax authority.
The case stems from SRO 924(I)/2020, issued by FBR to regulate Designated Non-Financial Businesses and Professions (DNFBPs) — including jewellers, builders, and developers — under AMLA 2010.
In a review petition filed by the Pakistan Gems Jewelers Trade & Exporters Association, the FTO acknowledged that while the Revenue Division holds regulatory powers under AMLA, the absence of clear operational guidelines has led to harassment and uncertainty within the jewellery sector.
During the proceedings, FBR representatives informed the FTO that several meetings had been held with industry stakeholders and that further consultations would be undertaken to address ambiguities. They also assured that no coercive measures would be taken during the SOP formulation process.
The FTO accepted the review petition and directed the Directorate General of DNFBPs to hold detailed consultations with the association and frame comprehensive SOPs to ensure fair and transparent implementation of SRO 924(I)/2020.
Until then, the FBR and its field offices have been instructed not to take any punitive or enforcement action against jewellers.
