Chennai: Jewellers across Tamil Nadu and Puducherry will go on a strike on Thursday to protest against the Centre’s decision to ask customers produce their Pan card when purchases are made above Rs 2 lakh. In case of no Pan cards, the Centre has asked customers to produce Form 16, which contains details of the customer’s tax returns.
The Chennai Gold and Diamonds Retailers Association is protesting against this new rule claiming they would lose out on many customers. Association president Jayanth Lal Salani told reporters that there were about 36,000 jewellery shops in Tamil Nadu and Puducherry and of these 8,000 are in Chennai. “ All these shops will remain closed because of the Centre’s anti trading policy. Over seven lakh employees from all jewellery stores will participate in the protest, “ said Salani.
The protest will result in about Rs 250 crore loss on a single day, according to sources. The retailers sell about 800 to 1,000 kg of gold every day and foresee a huge loss due to the protest but are intent on their agenda.
Since the beginning of the year gold prices have recovered 12 per cent and have hit a level seen previously in June 2015.
“European and US equity markets were down and the US dollar index too fell. Subsequently, safe haven investments were seen flowing into gold,” said Himanshu Gupta, senior research analyst, Karvy Comtrade.
However, the decline in dollar index and subsequent strengthening of rupee will have a bearing on domestic gold prices, industry sources said.
“I wanted to buy gold ornaments for my daughters wedding, the increasing gold price is not good news. I have been waiting for reduction in gold price for the past one month, but the prices are soaring”, said K Komal, a resident of Chintadripet.
