From Our Special Correspondent
Daijiworld Media Network - Goa
Goa, Dec 17: 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, has expressed dissatisfaction over the imposition for requirement of PAN card on any transaction of Rs 2 lakhs and above.
In a statement, GJF chairman Sreedhar G V said, “This is not practical and will discriminate 70% of the rural buyers including farmers as they are not under tax net and do not have PAN cards. We urge the government to remove pan card requirement in jewellery sector and maintain status-quo on application of TCS on sales of bullion on Rs 2 lac and on Rs 5 lac of jewellery. We also emphasized the need to reduce import duties on bullion, gems, jewellery and jewellery machineries.”
Sreedhar further said, “The gems and jewellery sector is not a source to attract black money since there is a value addition of 15-20% in developing the products while bullion is a preferred segment for investment by black money holders. Today, people buy jewellery items not only for their daily use but also for essential purposes like festive and religious functions including marriages."
Overall, GJF believes that the decision on imposing PAN card restriction is not fair and justifiable under law as it is tantamount to discrimination against a large number of the population who do not have PAN card number. In India, hardly 8 to 10 per cent of the population has PAN card and a large number of rural buyers of jewellery will be deprived of buying jewellery items for marriages of their family members. Government needs to come up with more trade and industry friendly policies where industries can develop and grow to build the economy.”
Speaking on the PAN card issue, Bachhraj Bamalwa, director, GJF, said, "The gems and jewellery sector is not the generator of black money. More than 80% of the value of jewellery is raw material like gold and silver which are legitimately imported into the country.”
Ashok Minawala, director, GJF, said, “We will be facing problems of encouraging buyers to visit our showrooms since the new restriction of PAN card is compulsory for buying jewellery articles above Rs 2 lac. It is a negative step for the industry as this would neutralize the benefits arising out of monetization scheme which is positive. As of March 31, there are approximately 22.3 crore PAN cards issued in India. Will it be justifiable to ask for a PAN card to approximately 89-90% of the population who do not possess one?”
About GJF:
The All India Gems and Jewellery Trade Federation (GJF) represents over 6,00,000 players comprising manufacturers, wholesalers, retailers, distributors, laboratories, gemologists, designers and allied services to the domestic gems and jewellery industry. The gems and jewellery industry has over 1 crore strong labour force engaged in the manufacturing of jewellery across the country. The federation’s mission is to support and promote the progress and prosperity of all the members in the gems and jewellery industry across India. It also provides regular news and updates pertaining to the industry, and rules and regulations declared by the government. It promotes trade, by participating in promotional events on a national level. It encourages trade by organizing consumer exhibits in India. It also counsels educational and research institutes that help in developing superior quality and high standards for effective functioning of the trade. The gems and gold jewellery business has made significant contribution to the Indian economy and society. The sector has grown phenomenally on the national and international front in the last few years. The industry is in the transition phase where family owned entrepreneurial businesses are slowly evolving and transforming into organized professional organizations. Creating a proper policy framework will pave the way for stimulating growth and encouragement.