The All India Gems and Jewellery Trade Federation (GJF), the national trade federation for the promotion and growth of trade in Gems and Jewellery (G&J) sector across India, on Monday expressed dissatisfaction over imposition of requirement of PAN Card on any transaction over Rs1 lakh. It said this is not practical and will discriminate 70% of the rural buyers as they are not under tax net and do not have PAN cards. The high import duties have promoted smuggling and this new measure shall in no way stop generation of black money.
“The delay in lowering duty on gold only hamper our economy as black money will be generated and parked in gold. Government will require to come up with more trade friendly policies where industries can develop and grow to build the economy,” Anil Talwar, Regional Director, GJF, said. GJF however, welcomed several new initiatives by the Government in its budget proposals including gold monetisation scheme and also bringing jewellery sector under ‘Make in India’ programme of the Government.
“We will be facing problems of encouraging buyers to visit our showrooms since the new restriction of PAN card compulsory for buying jewellery articles above Rs1 lakh. It is a negative step for the industry as this would neutralise benefits arising out of monetisation scheme which is positive. As of last year, there are more than 14 crore pan cards issued. Will it be justifiable to ask for a pan card to approximately 89% of the population who do not possess oneIJ”, he asked.