Deadlock Over Tax Law Raises Strike Threat Across Pakistan
Gold markets across Pakistan may face a major shutdown this week. Negotiations between the Federal Board of Revenue and the All Pakistan Sarafa Gems and Jewelers Association have ended without success. As a result, jewelers are now considering a nationwide strike within the next 48 hours.
The talks took place at the FBR headquarters in Islamabad. Delegations from Karachi, Lahore, and Rawalpindi attended the meeting. Discussions continued for nearly three hours. However, both sides failed to reach a final agreement.
According to officials, progress was made on several tax-related issues. These included sales tax and registration in the tax system. Despite this, one major issue remained unresolved. Therefore, the overall negotiations collapsed.
Section 175C Dispute Becomes Major Sticking Point
The main disagreement centers on Section 175C of the tax law. This section deals with audit and inspection powers. The FBR wants stricter monitoring of gold businesses. However, traders strongly oppose the proposed measures.
The association has rejected the idea of placing two FBR officers in each jewelry shop. They argue that this move would disrupt daily operations. Moreover, they believe it would create unnecessary pressure on business owners.
Traders also raised concerns about unlimited inspection periods. They say officials could stay at shops for long durations. As a result, business activities could be affected. Therefore, the proposal has been labeled unacceptable by the community.
Qasim Shikarpuri, president of the association, confirmed the concerns. He said traders will not accept the implementation of Section 175C. He also warned that resistance will continue if the policy is enforced.
Nationwide Strike Decision Expected Within 48 Hours
Following the failed talks, gold traders are now consulting with members across the country. A final decision on a strike is expected soon. If approved, markets could shut down nationwide.
Such a strike would impact gold trade significantly. It could also affect customers planning purchases. In addition, disruptions may influence gold prices in local markets.
Meanwhile, uncertainty continues to grow among traders and investors. The lack of agreement has created tension in the market. Therefore, many are closely watching the next steps.
In conclusion, both sides remain far apart on key issues. Without compromise, a nationwide shutdown seems likely. The coming days will be critical for Pakistan’s gold industry.
