The imposition of a 17 percent sales tax on gold jewellery in the minibudget would push the price of the precious metal above Rs150,000 per tola, according to the Pakistan Gems Jewellery Traders and Exporters Association (PGJTEA), which proposed that the government tax ‘jewellery making’ rather than the finished product.
“It is a horrible choice for the jewellery industry,” PGJTEA chairman Akhtar Tesori said, adding that “we reject this 17 percent new tax on gold and silver jewellery.”
Tesori claimed that it would harm gems, worrying that jewellery firms would be destroyed and that the low and middle-income groups, who buy modest ornaments for their daughters’ weddings, would no longer be able to purchase them for their once-in-a-lifetime celebrations.
He went on to say that the demand for the precious metal will fall, resulting in decreased need for labour and, eventually, job losses in the business.
