It has been advised by the Ministry of Commerce (MoC) to limit gold imports until the exchange rate has stabilized.
The Senate Standing Committee on Commerce’s Subcommittee had a meeting in Parliament House. Senator Fida Muhammad called the meeting to get a report on gold imports.
The committee examined numerous difficulties facing the sector. The specifics of the import policy were also disclosed. It was said that the Entrustment and Self Consignment Schemes now control the import of gold into Pakistan.
A jeweler is permitted to export jewelry created from locally obtained precious metals and gemstones under the Self Consignment Scheme and to realize 50% of such export revenues in the form of gold import.
The gems and jewelry industry has been presenting the MoC in order to examine strict restrictions. The Prime Minister’s Taskforce for Gems and Jewellery and Tax Ombudsman has also made suggestions to the government in this respect.
As a result, the MoC established a Gems and Jewellery Committee to address issues. The Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), the MoC, and the Trade Development Authority of Pakistan were all represented on the panel (TDAP). For changes, proposals have been completed.
The committee was informed that there is now zero percent duty and a reduced sales tax of 17 percent intended to entice jewelers to pay taxes. The government advised that gold imports be restricted until the rupee stabilizes given the country’s present economic position. The situation could be examined later.
The committee gave the order that the FBR be called to the next meeting for more information on the tax laws that apply to the sector. For a comprehensive perspective, the Sarafa Committee members will also be contacted.
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