FBR Compiles 57,000 Jewellers’ Data to Tackle Tax Evasion

The Federal Board of Revenue (FBR) has intensified its scrutiny of the country’s jewellery sector, as authorities push to bring one of Pakistan’s most lucrative yet under-taxed industries into the formal net. According to reports, the FBR has compiled data of around 57,000 jewellers nationwide in a bid to identify non-filers, track cash-heavy transactions, and curb tax evasion.

While officials have not publicly confirmed the exact figure, senior tax officers acknowledge that the jewellery trade remains a high-risk sector for under-reporting, money laundering, and undocumented cash flow.

Why the Crackdown?

Gold and jewellery are not only cultural symbols in Pakistan—especially linked to weddings and savings—but also a booming business. Despite this, the industry’s tax contribution is disproportionately small.

Out of an estimated 60,000 jewellers across Pakistan, fewer than half are registered with the FBR. Even among those registered, many either file zero returns or declare incomes that fall mysteriously below taxable thresholds.

“This is an industry handling billions of rupees every year, yet its documented contribution is negligible,” a tax officer in Karachi told local media.

AML and FATF Pressure

The crackdown comes in the backdrop of Pakistan’s commitments under the Financial Action Task Force (FATF) framework. Under the Anti-Money Laundering Act (2010), jewellers are classified as Designated Non-Financial Businesses and Professions (DNFBPs), which requires them to:

• Register with FBR as DNFBPs

• Collect and maintain buyer data for transactions above specified limits

• Report suspicious transactions

• Ensure customer due diligence (CDD)

Officials say compliance levels are still far from satisfactory, prompting the Directorate General of DNFBPs to issue notices, conduct inspections, and demand records from jewellers in major markets.

Reactions From the Sector

The move has sparked mixed reactions in the business community.

Jewellers’ associations argue that sudden inspections and heavy documentation requirements create panic. “We are not against registration, but harassment of small traders will damage our livelihood,” a representative from the Punjab Jewellers Association said.

However, FBR maintains that without compliance, the jewellery sector will remain a black hole for revenue and a potential channel for illegal financial flows.

Public Data and the “57,000” Debate

The figure of 57,000 jewellers being under FBR’s radar quickly caught public attention. Some analysts suggest this number may represent a consolidated directory of licensed and unlicensed businesses, while others believe it refers to jewellers already identified through market surveys and trade association records.

Regardless of the exact count, the message from the tax authority is clear: the era of undocumented transactions is ending.

Possible Outcomes

• Higher Tax Collection: Improved compliance could significantly boost revenue for the government.

• Consumer Impact: Buyers may face additional paperwork and slightly higher costs due to compliance overheads.

• Legal Risks: Non-compliant jewellers could face fines, suspension, or sealing of outlets under AML and tax laws.

• Market Formalisation: In the long run, the crackdown could build greater transparency in an industry often criticised for secrecy.

What’s Next?

Officials indicate that this is only the first phase of action. After data compilation, the next steps may include cross-checking jewellers’ declared incomes with transaction records, verifying purchase invoices, and tightening spot inspections in urban gold markets.

Observers believe this enforcement drive could be a game-changer if implemented consistently. Pakistan’s jewellery trade, worth billions annually, has long operated in the shadows. With international watchdogs monitoring and domestic tax revenue under strain, the government appears determined to shine a light on the glittering but opaque world of gold and gems.