Government to form a 3-member committee to address the jewellers’ woes; 70% jewellers remain defiant

On Sunday, the government issued a circular, following its meeting with jewellery associations, and said there will be no Inspector Raj and no excise official will harass them Deepak kumar | The Dollar Business

Finance Minister Arun Jaitely, in his Union Budget 2016, had announced an imposition of 1% excise duty on non-silver jewellery articles

Even as the gems & jewellery industry agreed to end their 18-day long strike following the government’s recent proposal, about 70% of the jewellery traders continue to remain closed, demanding the government to be quick and transparent in its decision to roll back the excise duty. “Majority of the people want the duty to be completely taken off. Strike is continuing, and more than 70% of jewellery traders are closed despite the assurance from the government,” Bachhraj Bamalwa, Director of All India Gems and jewellery Trade Federation (GJF), told the Dollar Business. The country’s jewellery associations, such as All India Gems & Jewellery Trade Federation (GJF), India Bullion and Jewellers Association (IBJA) and Gems and Jewellery Export Promotion Council, had declared a nationwide jewellers’ strike after Union Finance Minister Arun Jaitely, in his Union Budget 2016, announced an imposition of 1% duty on non-silver jewellery articles. On Sunday, the government issued a circular following its meeting with jewellery associations that that there will be no Inspector Raj and no excise official will harass them. The finance ministry said it would set up a three-member committee to look into the matter and make the excise rule simplified. The committee will submit its report within 60 days. Meanwhile, the industry has underlined that the excise duty should be completely withdrawn, and the industry will not accept a partial rollback. “The assurance given by the government that no Inspector Raj will continue is not weighted by the law. So, the instruction given by the Finance Minister Arun Jaitely becomes weightless,” Bamalwa said. But Bamalwa also added that the jewellery association found the move by the Government to set up a 3 member-committee as a ‘mere console’. Not much of a relief can be gained from the committee until the imposition of 1% duty is stopped. The GJF Director said that many artisans and manufacturers are not fully aware of the excise law as it is very complex. So, there is an apprehension in their mind. “Majority of the jewellers are of the opinion that excise department offices are notorious. Our artisans and manufacturers are mostly unorganised. They fear that despite the assurance from the government; inspectors will visit them, harass them, extort them and threaten them to put them behind the bars,” he said. India’s gems and jewellery industry is estimated to be worth Rs.300,000 crore – 350,000 crore, and its daily turnover is about Rs.1,000 crore. Therefore, the industry has suffered a loss of about Rs.20,000 crore during the last 20 days of strike. The government’s net loss is projected to be around Rs.2,000 crore – Rs.2,200 crore, in terms of import duty of 10% and VAT 1%. Bamalwa said that the idea of an additional 1% import duty has been suggested by the bureaucrats with an intention to nab the jewellers’ income. The government has been convinced fully to introduce this in the name of bringing GST. “The government plans to migrate 300 items under its GST framework. If 300 items are imported into the GST umbrella without excise duty being imposed on them then why not the gems & jewellery sector,” Bamalwa remarked.

March 22, 2016 | 06:30pm IST

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The Dollar Business Bureau - Mar 22, 2016 12:53 IST

Government to form a 3-member committee to address the jewellers’ woes; 70% jewellers remain defiant

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