Exchequers of all states are poised to lose about Rs 13.5 crore (Rs 135 million) of revenue from value-added tax in a single day as about 99,000 jewellers in the country have decided to go on a strike on Wednesday to protest the Union government’s directive making declaration of permanent account number mandatory.
After the directive was implemented on January 1, organised jewellers say they have lost 30 per cent sales.
According to Suvro Chandra, joint managing director of P C Chandra Jewellers, customers are reluctant to buy as a majority either don’t have a Permanent Account Number card or fear a declaration.
“An option to fill up Form 60 has been given to people who do not have a PAN card but people are reluctant to fill all the 24 sections in that form.
"We, like the industry, have lost about 30 per cent sales in January,” he said.
The organised jewellery market, comprising around 100,000 shops, is about 45 per cent of the market, pegged at Rs 3.5 lakh crore (Rs 3.5 trillion).
Sankar Sen, chairman and managing director of Senco Gold, who is also the zonal chairman -- east of the All India Gems and Jewellery Trade Federation, said the association has called for the strike finding no other alternative.
“We want the government to roll back this threshold of mandatory PAN declaration to Rs 500,000.
"This way we will be able to carry on our usual business," he said.
Sen said the restriction has discouraged a majority of semi-urban and rural buyers, who are engaged in farming or in small trade practices, from purchasing jewellery.
Subhadip Roy of Bengal Jewellery claimed 40-50 per cent of daily transactions, valued around Rs 1,350 crore (Rs 13.5 billion) nationally, is comprised of inherited gold.
“People also resort to recycling inherited gold and here, they are questioning why PAN declaration is compulsory as they are not purchasing it anew," he said.
The association is also pressuring the government by approaching the Trinamool Congress.
“We have given a deputation to the chief minister and her party so that this issue can be raised at committee meetings of the Lok Sabha in the pre-Budget sessions," a source in the industry said.
Asked what the course of action will be if the government doesn't yield to their demand, the source said, “The future depends on the Budget.
"We hope the government will understand our concerns."
The source said they would intensify the protest if their concerns are not addressed in the Budget.
