Post News Network
Bhubaneswar, Jan 7: Jewellery business may see a decline of 30-35 per cent in next one year after implementation of mandatory furnishing of PAN for high value gold jewellery purchases, an official of All India Gems & Jewellery Trade Federation (GJF) said.
“With mandatory furnishing of PAN card details for purchase of jewellery worth more than Rs 2 lakh, jewellery business may see 30-35 per cent degrowth in next one year in the eastern zone of the country,” Zonal Chairman (East) of All India Gems & Jewellery Trade Federation, Sankar Sen said here Thursday. He also said 20-25 per cent decline has already been seen post implementation of this new norm from January 1, 2016. “The new policy is not practical and will discriminate 70 per cent of rural buyers including farmers who do not fall under the tax net,” Sen said adding around 23 crore PAN cards have been issued in India against a population of about 125 crore.
On market size of the gems and jewellery industry, he said it stands at around Rs 3.15 lakh crore with the eastern zone contributing 20 per cent of it. “We feel there is a great misunderstanding between gold or bullion with jewellery. While Jewellery is for consumption, bullion is mainly for investment. The PAN card restriction imposed by the government would lead to mass unemployment and will also discourage non-PAN card buyers to buy gold for their family,” he said.