Jewellers observe strike, protest PAN rule on gold buying

Tribune News Service

Mumbai, February 10

Jewellers across India went on a one-day strike today to protest the rule under which customers are required to produce a PAN card for purchase of jewellery exceeding Rs 2 lakh.

According to the All India Gem and Jewellery Trade Federation (GJF), over 1 lakh jewellers across the country participated in the strike. “The strike is total and all the jewellery shops across the country are closed today,” Ashok Minawala, director, GJF, said.

More than 200 regional associations of jewellers from different parts of the country under the banner of the GJF joined the strike.

“More than 80% of the people in the country do not have a PAN card. Moreover, farmers and agriculturists, who are the biggest buyers of gold, do not have PAN cards and pay in cash,” Minawala added.

He said people who buy gold in cash to hide black money usually buy the yellow metal in the form of biscuits or coins rather than jewellery.

Among those who joined the strike included some of the biggest corporate jewellery chains. “While smaller jewellers can split the bill into amounts smaller than Rs 2 lakh to circumvent the rule, we cannot do that,” an official of Tribhovandas Bhimji Zaveri said.

The new rule came into effect from January this year. Several big jewellers say they expect sales to fall sharply as buyers shift to smaller jewellers.

Analysts warn that buyers who buy jewellery from the unorganised sector without proper documentation face the threat of fraud.

The striking jewellers hoped that the Union government would scrap the rule in the forthcoming Budget.