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Udupi : Jewellers’ will observe one day token strike on Wednesday, 10^th February, 2016 to concern in Germs and Jewellery industry over the recent mandatory PAN card requirements on purchase of Rs. 2 lakhs and above, said Alevoor Yogish Acharya, Udupi Jewellers Association.

He speaking with media persons on Monday, 8^th February, he said in the last fes days the Finance Ministry has announced the to produce PAN Cards for any mode of payment over Rs. 2 lakhs. Since this announcement in the last Budjet we have at retail level tried to make PAN cards mandatory for retail customers and we realized business suffered as customers resisted and considered this a harassment and coming in the tax net.

This move shall not shrink market size as business will carry on as usual by the unscrupulous who will do business in cash to the detriment of the nation’s economy. We feel there is great misunderstanding of gold/bullion with jewellery. Jewellary is for consumption shile gold are investment products. Jewellary is needed by the people across the country and should be not be curtailed. Our industry has for the first time seen hope for BJP government. We support governments initiatives to curb black money. We here by reiterate our issues and need for consideration to keep Gems Jewellery at Rs. Five lacs limit set for us.

He said that Gems and jewellery industry contributes about 3.5% of GDP. There are around 22.5 crore PAN Cards holders over 86% population do not have PAN cards. Only 14% population has PAN cards. Even today 70% of our industry thrives in and from the rural markets where people do not have PAN cards and are not at all conversant with. The average wife has a need to by jewellery as social security and as she feels secured. Jewellery is not an item of luxury. The average buying for marriage is around 250gms. Of jewellery is around Rs. 7.50 lacs and Rs 2 lacs will buy around 70grams of gold jewellery.

Jewellery unlike gold bars has value addition of 15% to 30% leaves no scope of parking black money. Pan card requirement of Rs two lakh sales will kill retail sector and value chain along with it. If Pan cards mandatory official business will drop and jewelers promoting non billed cash sales will mushroom.

He said they seek a place in the future for their workers and new generation. It is their humble request old industries like their should not be strangled but need to be nourished. The PAN card or any ID requirement for purchase of bullion gold can be continued, but the limit of Rs. 5 lakhs on sales of jewellery should be continued.

During the press meet office bearers of Udupi Jewellery Association Jaya Acharya, Sunil Shet, Mohan, Ravi Shankar Shet and others were present.