The Federal Board of Revenue (FBR) has initiated a crackdown against jewellers who are either paying less tax or remain outside the tax net.
Notices have been served in several major cities, including Islamabad, Rawalpindi, Faisalabad, and Multan, with officials warning that tax evaders will face strict action.
Thousands of jewellers outside tax net
According to FBR officials, Pakistan’s jewellery business is vastly underrepresented in the tax system. Out of nearly 57,000 people involved in the trade, only 20,000 are officially registered.
The gap narrows further when it comes to compliance. Among the registered jewellers, just 10,000 have filed their tax returns, raising concerns about large-scale evasion within the sector.
FBR sources revealed that tax evasion is widespread even in the federal capital. Officials identified 50 jewellers in just one market of Islamabad who are operating outside the tax net.
“Traders who evade taxes will be dealt with strictly,” an FBR spokesperson said, adding that enforcement efforts will continue across multiple cities.
On Saturday, board launched a crackdown on wealthy individuals showcasing their extravagant lifestyles on social media.
Authorities said they had collected data on 100,000 people flaunting luxury homes, flashy cars, expensive jewellery, and lavish weddings, warning that those who fail to update their tax returns will face legal action.
According to FBR officials, individuals who display their wealth through videos and photos online are under close observation. Big bungalows, luxury vehicles, high-end jewellery, and extravagant spending at weddings are being carefully tracked.
Officials revealed that some individuals have been seen wearing suits worth $20,000 at weddings, a sign of the extreme luxury being flaunted publicly. Such displays, authorities say, must align with the income declared in tax filings.
Data collection and audits
The FBR’s dedicated social media team has compiled data on around 100,000 people suspected of leading lifestyles far beyond what they report in their income tax returns. Authorities will compare last year’s returns with those submitted this year to identify discrepancies.
Sources confirmed that nearly 80% of all tax returns will be audited as part of this exercise. Anyone found hiding assets, wealth, or income will be asked to provide an explanation of their sources of income. “Action will be taken against those who do not disclose the increase in annual income in their returns, FBR sources said.
Meanwhile, FBR has also reminded taxpayers that September 30 is the final date for filing income tax returns for the current year. The authority has urged individuals and businesses to ensure timely and accurate submissions.
FBR calls for honest declarations
In a public advisory, FBR emphasized the importance of filing returns truthfully. “Submit your income tax correctly and honestly,” the revenue body said.
