Negotiations between the Federal Board of Revenue and the All Pakistan Sarafa Gems and Jewelers Association recently ended without a breakthrough. This failure has raised the threat of a nationwide gold sales shutdown within the next 48 hours. Traders across the country are expressing deep concerns over new regulatory measures. While both sides reached an understanding on basic tax registration and sales tax matters, a significant deadlock remains. The primary issue involves Section 175C, which grants the government extensive audit and inspection powers.
The jewelers’ association strongly opposes the proposed placement of tax officers at every jewelry shop. They describe this move as direct interference in their daily business operations. Under the current proposal, officers could remain at business premises for an unlimited period to conduct audits. Traders argue that such a presence is unacceptable for a functional retail environment. Association President Qasim Shikarpuri stated that the community will not accept the implementation of these rules starting April 4.
Impact of the Nationwide Gold Sales Shutdown
The latest round of negotiations took place at the FBR headquarters in Islamabad. Delegations from Karachi, Lahore, and Rawalpindi attended the three-hour session. Despite the long discussion, the parties could not reach a final agreement. This leaves the local gold market on edge as the deadline approaches. A nationwide gold sales shutdown would disrupt the economy and affect thousands of small businesses. Traders are now holding urgent consultations to decide their next steps before the weekend begins.
The association warns that they will take a final decision on the strike within the next 48 hours. Officials remain hopeful for a resolution, but the jewelry community remains firm in its stance. They believe the permanent presence of tax officers at shops creates an atmosphere of distrust. If the government does not revise Section 175C, the markets may remain closed indefinitely. This situation highlights the growing tension between the retail sector and tax authorities over documentation and monitoring.
