KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has endorsed the monitoring of jewelers’ business transactions by the Federal Board of Revenue (FBR), while strongly cautioning against any form of harassment by tax officials.
The stance emerged during a meeting held on April 30, where a delegation of jewelers raised concerns over the FBR’s deployment of Inland Revenue officials at shops and workshops to oversee transactions.
Sources revealed that KCCI clarified the legal basis for such monitoring under Section 175 of the Income Tax Ordinance, 2001, which authorizes tax officials to enter and inspect business premises. However, the chamber emphasized that it does not condone any misuse of authority or unlawful conduct carried out under the guise of enforcement.
The jewelers’ delegation expressed reservations about the presence of tax officials at their premises, arguing that it has created operational disruptions and raised privacy concerns for both traders and customers. They also alleged instances of undue interference and potential abuse of powers, affecting routine business activities.
In response, KCCI assured the delegation that their concerns would be taken up with senior FBR officials. The chamber also reiterated the need to broaden the tax base by bringing undocumented jewelers into the formal economy.
The development comes as another group of jewelers engaged in discussions with FBR leadership in Islamabad over the same issue. Despite ongoing negotiations, the dispute remains unresolved, with the FBR maintaining that its enforcement powers under Section 175 cannot be rolled back.
KCCI reaffirmed its support for lawful tax compliance measures while stressing the importance of protecting businesses from unnecessary pressure and ensuring a fair and balanced approach to enforcement.
