UP jewellers oppose PAN requirement for over Rs 1 lakh transaction

To urge CM, MPs, MLAs to espouse their cause before Centre

The gems and jewellery traders on Monday opposed the imposition of Permanent Account Number (PAN) Card requirement on transactions above Rs 1 lakh from the next financial year, as proposed in the Union Budget 2015-16.

The traders under the aegis of the All India Gems and Jewellery Trade Federation (GJF) have urged the Union finance minister to reconsider the decision, which they claimed will not only adversely affect their business but also spur parallel economy and gold smuggling.

GJF Regional Director Rajan Rastogi said the decision would further bring about hardships to the common people, as the majority of them still do not possess PAN Cards.

“We urge the central government to first ensure that all the eligible people are provided with a PAN Card before implementing such a decision," he said.

As of last year, there were about 140 million PAN Cards issued in India. “Will it be justifiable to ask for the PAN Card to approximately 89 per cent of the country’s population, which does not possess it," Rastogi has said.

According to him, gems and jewellery business worth around Rs 4,500 crore are transacted in Uttar Pradesh yearly.

“If the PAN Card requirement for transaction above Rs 1 lakh is implemented, it would erode 70 per cent of our clientele, especially in rural areas," he said.

The Federation plans to write to the respective people’s representatives in their regions, including chief ministers, parliamentarians and legislators to raise their issues and impress upon the Centre to revoke the proposal regarding the PAN Card requirement.

The Federation, however, welcomed several new initiatives in the Union Budget, including gold monetisation scheme and bringing jewellery sector under the Make in India programme.