PAN card link will hit jewellery biz: GJF

Industry body urges Centre to withdraw proposal to make PAN card mandatory for transactions above 1 lakh

Hyderabad: The All-India Gems and Jewellery Trade Federation (GJF) on Monday urged the Central government to withdraw its proposal to make PAN card mandatory for gold transactions exceeding Rs 1 lakh, claiming the move will hit the jewellery and gold business across the country.

“This is an impractical move because large chunk of our population doesn’t have PAN cards. It also discriminates 70 per cent of the rural buyers as they don’t fall under tax net and so don’t have PAN cards,” H Mohanlal Jain, Regional Director, GJF, told the media here.

Further, he also expressed fears that gold sales would fall by more than 50 per cent and the trade would suffer immensely if the government failed to withdraw the proposal which would come into force on April 1 this year. “It is a negative step for the industry as this would neutralise benefits arising out of gold monetization scheme announced the Budget,” he said. According to him, there are not more than 14 crore PAN Cards in the country as of last year.

“Will it be justifiable to ask for a PAN card from 89 per cent of the population who don’t possess one?” he asks. He further warned that would fuel creation of black money instead of stopping it. Replying to a query, he said the industry would put pressure on the government till it withdrew the proposal. “We will also rope in other trade bodies and other sectors, and carry out a continuous campaign against the move,” Mohanlal Jain said.

GJF represents over 6 lakh players across the country, comprising manufacturers, wholesalers, retailers, distributors, laboratories, gemologists and allied services in the gold and jewellery space. “Over 1 crore people are employed in the sector and they will also face problems if such proposals are implemented,” said another member of the federation.