The All India Gems and Jewellery Trade Federation (GJF) are unhappy with the Centre’s decision to make PAN card mandatory. GJF said on Monday that the budget proposal mandating pan cards for all transaction above Rs 1 lakh would bring the industry down on its knees.
According to GJF, gold sales would fall by more than 50 per cent and the trade would suffer immensely if the government failed to withdraw the proposal, as this decision is not practical and will work against 70% of rural buyers who do not have PAN cards as they do not come under the tax net.
Currently, the gems and jewellery business in India is estimated to be around Rs 2.5 lakh crore out of which 70 per cent of the business comes from rural India. The organised sector will slowly die while the unorganised sector will thrive,” said Ashok Minawala, director, GJF.
Zaverilal V Mandalia, regional chairman, GJF, said “making PAN card mandatory will neutralize arising out of the gold monetization scheme announced in the Union Budget this year.”