Pan card mandatory on purchase of gold will be impractical: Sanjay Jain

Source: The Hitavada      Date: 01 Sep 2017 10:36:01


 

Business Reporter,

RAIPUR,

ALL India Gems and Jewellery Trade Federation (GJF) and Chhattisgarh Sarafa Association (CSA) has expressed dissatisfaction over a committee from Reserve Bank of India (RBI) suggesting the government to make PAN card mandatory on purchase of gold below Rs 2 lakh. This suggestion will enable all accounts related to purchase of any type of gold go online.


Since 20 per cent people in the country have Pan Card, the Sarafa traders have termed it as impractical and said that after all citizens become Pan Card holder it will be proper to make the RBI suggestion mandatory.
Director of GJF and General Secretary of CSA Sanjay Jain (Kanuga) said that the sarafa traders always supported the Central Government’s policy decision which was also seen during Excise Duty and GST.


While terming the RBI committee suggestion not only problematic for the sarafa traders, but would an embarrassment for the general purchasers of gold item. Since, 70 per cent of the sarafa
business depends on rural areas, where people whose main source of income is agriculture do not have Pan cards. These sections of the rural population generally purchase gold and jewelry to en-cash it easily while facing financial problem, Jain added.


He further pointed-out that if this proposal is imposed, the sarafa traders would start transactions without preparing bills on sales. This will reduce tax collection in the exchequer and incur loss to the government.


The gems and jewelry industry has been developing at 5 to 7 per cent each year for last 10 years. Apart from the continuous developments, the industry has established itself as a major employment generating sector. So, any impractical rules would impact the overall sarafa business and make people connected with this business unemployed, Sanjay Jain maintained.Jain said that the national unit of GJF is expected to find a solution to the issue and sarafa traders will follow its directive.