Jewellers in Bhatkal on strike to protest PAN rule on gold purchases

Febuary 10, 2016 | Correspondent | Bhatkallys News Bhatkal: Indian jewelers were up in arms on Wednesday, with strikes called in nearly 500 cities to protest the government’s new rule on all jewellery transactions of Rs 2 lakh and above. Cooperating with the nation-wide strike against the government's decision to impose PAN card for purchase above Rs 2 lakh, Gold shops in Bhatkal were closed on Wednesday. Speaking to Bhatkallys' correspondent, Gold House proprietor Ataullaah Ruknuddin said that government has implemented a new rule that makes it mandatory for customers to provide a PAN card on all jewellery transactions of Rs 2 lakh and above. The government’s decision will affect gold transactions severely as even a small purchase ends up with a bill of above Rs 2 lakh, he added. The one-day strike, which saw participation of about 100,000 jewellers across India under more than 200 associations, is the first of many such large-scale strikes being organised ahead of the 2016 Budget in a bid to pressure the government to revoke the new norms, and to come out with a clear demarcation between gold and gold jewellery purchases. The government had devised the rule in December last year, and implemented it from January 1, 2016, applying it to all sale and purchase of goods and services and for all modes of payment. The move is aimed at curbing black money or unaccounted money that is typically used to make such purchases. However the jewellers’ federation says that such a restriction will result in an increase of under the counter payments. - With inputs from HT