The senate standing committee on commerce met. Senator Fida Muhammad presided over the meeting, which was called for a report on gold imports.
The group reviewed a variety of concerns confronting the sector. Import policy details were also disclosed. It was said that the import of gold into Pakistan is now controlled by the Entrustment and Self Consignment Schemes. A jeweller can export jewellery created from locally sourced precious metals and gemstones under the Self Consignment Scheme and get 50pc of the export revenues in the form of gold import.
The Ministry of Commerce has been receiving representation from the gems and jewellery industry in order to examine harsh rules. The Prime Minister’s Taskforce on Gems and Jewellery and the Tax Ombudsman have also made recommendations to the ministry on this matter. Accordingly, a Gems and Jewellery Committee was created by MoC to address issues. The group included representatives from the MoC, the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR), and the Pakistan Trade Development Authority (TDAP). Amendment proposals have been finalised.
The committee was informed that 0pc duty was now levied, and the 17pc sales tax had also been reduced to encourage jewellers to enter the tax net. Given the country’s current economic situation, the ministry advised that gold imports be restricted until the rupee stabilised. The situation might be revisited at a later date.
The committee directed that the FBR be called at the next meeting for information on the industry’s taxes standards. Members of the Sarafa Committee will also be summoned for a comprehensive review.