Only 10,000 of Pakistan’s 57,000 jewellers filed tax returns, Federal Board of Revenue officials said, as the agency opened a nationwide operation to bring the sector into the tax net.
As a result, notices have gone out to unregistered businesses and to traders paying below their apparent capacity.
Scale of non-compliance in Pakistan
Officials said about 20,000 jewellers are registered, yet half of them did not file returns. In other words, tens of thousands remain outside the system.
The FBR said the drive aims to broaden the tax base, curb evasion, and lift fiscal compliance across sectors.
Therefore, the authority plans tighter monitoring and data matching.
Cities in the first wave for crackdown against tax evading jewellers
The first notices were issued in Islamabad, Rawalpindi, Faisalabad, and Multan.
In Islamabad alone, 50 jewellers were flagged for gaps between their filed returns and the size of their shops, business volumes, or visible lifestyle.
Next, the FBR will seek explanations from thousands more across the country.
Process, safeguards, and penalties in FBR official notice
Officials said no trader or industrialist will be targeted without cause. However, confirmed evaders will face strict action under tax laws.
The FBR framed the push as a fairness issue. “If every citizen pays their due taxes honestly, the country’s economy can run more efficiently,” an FBR representative said.
Because of this, the agency wants every business category integrated into the national tax net.
The operation forms part of an ongoing compliance agenda.
Going forward, the FBR will use third-party data and field checks to test reported income against business activity.
Traders who receive notices must document registration status, returns, and sources of sales.
Failure to comply can trigger assessments and penalties. In the end, the tax body says the goal is not disruption but a wider, cleaner base that funds public services.
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