Tax on Selling Gold in Pakistan
Jewellery and coins remain capital assets even when held for personal use, so a gain on selling them is taxable: it is added to your income and taxed at normal slab rates, with no reduction for long holding. Losses on jewellery and coins can't be claimed. (Sourced from secondary summaries of the Income Tax Ordinance; check the current law with the FBR.)
Facts checked 26 October 2026 · Not financial, legal or tax advice
At a glance
| What you sell | How the gain is taxed | Notes |
|---|---|---|
| Gold jewellery and coins | Gain taxed at normal slab rates (no holding-period relief). | No loss allowed on disposal. |
| Silver | Same capital-asset rules (low confidence). |
How gold gains are taxed
- Under section 37 of the Income Tax Ordinance 2001, a capital asset is property of any kind; movable property held for personal use is excluded, except the items listed in section 38(5), which include jewellery and coins and medallions.
- Gains on such movable assets are taxed at normal individual slab rates; the earlier 25% reduction for assets held over a year no longer applies.
- The Finance Act 2026 (enacted 26 June 2026) abolished section 7E, the deemed income tax on capital assets.
Reporting
- Report capital gains in your annual return; keep purchase records.
Losses
- No loss is recognised on disposing of jewellery, coins and medallions and the other personal assets listed in section 38(5).
Tax on Selling Gold in Pakistan: FAQ
Is there tax on selling gold in Pakistan?
Yes in principle: jewellery and coins are capital assets even if held for personal use, and gains are taxed at normal slab rates. Losses on them can't be claimed. Check the current rules with the FBR.
Sources (6)
General information about the rules for individual investors, checked October 2026. Tax depends on your circumstances and residence; check with the tax authority or an adviser. Not tax advice.