FTO Stops FBR from Taking Action Against Jewellers Until New SOPs Are Finalized
October 2025, a place in Pakistan — The Federal Tax Ombudsman (FTO) as per the Anti-Money Laundering Act (AMLA) 2010 has stopped the Federal Board of Revenue (FBR) from taking any step against jewelers until formal clear and transparent Standard Operating Procedures (SOPs) are issued.
This is a sequel step to a barrage of complaints filed by jewelers in every part of Pakistan against ambiguous rules and harassment under SRO 924(I)/2020, which put jewelers, builders, and developers in the list of DNFBPs of the FBR.
Pakistan Gems Jewelers Trade & Exporters Association had filed a review petition to the court, stating that the jewelry industry was going through operational challenges and uncertainty because of the absence of clear procedures. While FBR is empowered under AMLA to regulate such businesses, the FTO also conceded that inefficiently operating SOPs could lead to discriminatory treatment and uncertainty.
During the hearing, FBR representatives informed the FTO that they had already held multiple meetings with industry representatives and were working on finalizing the SOPs. They also pledged that no coercive measures would be used until the new framework was completed.
The Directorate General of DNFBPs was directed by the FTO in its ruling to further consult with jewelers and develop comprehensive SOPs that ensure the fair, transparent, and easy implementation of AMLA regulations.
All FBR field offices have been directed to refrain from pursuing enforcement actions against jewelers until that time.
The jewelry industry has largely embraced this action since it offers short-term respite and opens the door to a future regulatory environment that is more organized and collaborative.