FBR begins action against jewellers over tax evasion

The Federal Board of Revenue (FBR) has initiated a crackdown against jewellers who are either paying less tax or remain outside the tax net.

FBR has intensified its crackdown on tax evasion, serving notices in major cities including Islamabad, Rawalpindi, Faisalabad, and Multan. Officials warned that traders and individuals hiding wealth will face strict action. According to FBR data, Pakistan’s jewellery sector is heavily underreported in the tax system. Out of nearly 57,000 jewellers, only 20000 are registered, and just 10000 among them have filed tax returns. In one Islamabad market alone, officials identified 50 jewellers operating outside the tax net. Authorities stressed that strict enforcement will continue across the country.

At the same time, FBR has turned its focus toward wealthy social media users flaunting luxury lifestyles. A dedicated monitoring team has collected data on 100,000 individuals showcasing big houses, luxury cars, expensive jewellery, and extravagant weddings online. Officials said such displays must match the income declared in tax filings.

Authorities revealed that in some cases, people have been seen wearing suits worth $20,000 at weddings, raising red flags. Nearly 80% of all tax returns will now be audited to identify hidden wealth or undeclared income. Anyone found misreporting will be asked to explain sources of income, and legal action will follow if discrepancies remain unresolved.

FBR has reminded taxpayers that September 30 is the final date to file income tax returns for the current year. Officials urged citizens to ensure timely and accurate submissions to avoid penalties. In a public message, FBR emphasized that transparency is crucial for economic stability. The authority urged taxpayers to declare income honestly, assuring that those who comply will face no issues, while evaders will be strictly dealt with.