FBR RULES ยท FY 2026-27
Gold Tax in Pakistan 2026-27
Sales tax on jewellery, tax on selling gold, wealth statement rules and zakat, explained in plain language with a quick calculator.
Gold Price Calculator: Value, Sales Tax and Zakat (Tola, Gram, Karat)
Enter your gold weight and today’s rate per tola. Rates change daily, so use the current market rate.
Gold Tax Rules at a Glance
| Situation | What applies (FY 2026-27) |
|---|---|
| Buying gold jewellery from a jeweller | 3% sales tax on sale value (local jewellery). Usually included in the bill. |
| Buying gold bars or biscuits | Reported exempt from sales tax as monetary gold. Check your seller’s invoice. |
| Advance income tax on a private buyer | No rule found requiring jewellers to collect it from ordinary buyers. |
| Business paying for gold or silver | 1% withholding (reported clause 31, Part II, Second Schedule). Applies to withholding agents. |
| Selling gold at a profit | Gain (sale minus cost) can be taxable income. No separate flat rate reported. |
| Selling jewellery at a loss | Loss is not recognised for tax (section 37(5)). |
| Holding gold | Declare it at market value in the wealth statement (section 116). |
| Zakat on gold | 2.5% above 7.5 tola held one lunar year. Religious duty, not an FBR tax. |
Based on published guides reviewed in October 2026 (sales tax to 30 June 2026, income tax as published July 2026). Section references are given so you can check them with FBR.
Sales Tax on Gold Jewellery (3%)
Locally made gold jewellery is taxed at a reduced 3% sales tax on its sale value under serial 78 of the Eighth Schedule to the Sales Tax Act. Compare this with the standard 18% rate on most goods. The jeweller cannot claim input tax credit on it, so the 3% is a real cost that appears in your bill. Larger retailers are required to issue FBR-linked POS invoices, so ask for one.
Do You Pay Income Tax When You Buy Gold?
For an ordinary buyer, guides found no requirement for the jeweller to collect advance income tax. The 1% withholding rule applies to businesses that must deduct tax when they pay for gold or silver. What matters more for you is the money trail: if you pay with large cash withdrawals, see our guide to the cash withdrawal tax, where non-filers pay 0.8% above Rs 50,000 a day. Check your status on the ATL status page.
Selling Gold: Is the Profit Taxable?
The gain on a sale is the sale price minus what you paid. Guides report that gold has no separate flat capital gains rate, so a gain can be treated as income and taxed through your normal slabs. You can estimate that with our income tax calculator. Two points help you: a loss on jewellery is not recognised for tax, and receipts that prove what you paid can reduce the gain you are taxed on. This area is less settled than the sales tax rule, so confirm your own case with a tax professional.
Declaring Gold in Your Wealth Statement
If you file a wealth statement, include gold at fair market value, together with gold held by your spouse and dependants. Keep purchase receipts or a note of how you acquired it, including gifts. Under section 111, an unexplained valuable article can be treated as income, so records protect you.
Zakat on Gold Is Not a Tax
Zakat is 2.5% of the value of gold you hold above the nisab, about 87.48 grams (7.5 tola), for one full lunar year. It is a religious duty and is separate from FBR taxes. See our Zakat calculator for gold, silver and cash together.
Frequently Asked Questions
Is there sales tax on gold jewellery in Pakistan?
Locally made gold jewellery carries a reduced 3% sales tax on the sale value, and the jeweller cannot claim input tax on it. The tax is normally included in the bill. Check that your receipt shows it.
Do I pay income tax when I buy gold?
Published guides found no rule requiring a jeweller to collect advance income tax from an ordinary private buyer. Businesses that pay for gold may have to withhold 1% under the withholding rules, but that is on the business side. Rules can change, so confirm with FBR.
Is selling gold taxable in Pakistan?
A profit on selling gold (sale price minus what you paid) can count as taxable income, and guides report that there is no separate flat rate for it. A loss on jewellery is not recognised. Keep purchase receipts so you can prove your cost.
Do I have to declare gold in my wealth statement?
Yes. Filers who must submit a wealth statement should declare gold at fair market value, including gold held by a spouse and dependants. Declaring it as value not known is not recommended. Keep receipts to support the cost.
Is zakat on gold a tax?
No. Zakat is a religious obligation of 2.5% on gold above the nisab (about 87.48 grams, or 7.5 tola) held for one full lunar year. It is separate from FBR taxes.
Can FBR question gold I cannot explain?
Yes. Under section 111 of the Income Tax Ordinance, an unexplained valuable article can be treated as income. Keep receipts and records of how you acquired gold, including gifts.
Official Sources
Always confirm with the Federal Board of Revenue (FBR). Background reading: Pakistan Era: tax on buying gold and Goldz.pk gold tax guide. These are secondary sources, so rates and section numbers should be checked against FBR texts.
Disclaimer: QuickTaxPK provides estimates for information only. It is not tax, legal or religious advice and is not affiliated with FBR.