Jewellers protest against excise duty on non-silver jewellery
In the recent Union Budget presented by the Finance Minister Arun Jaitley, the government has proposed a 1% excise tax on jewellery with an aim to align gold with GST, which is expected to be implemented soon. “The proposal is not for small traders. However, jewellers are on strike since March 2 with the demand of withdrawal of excise duty on jewellery,” Jaitely said. In the Union Budget 2016, the government had announced an excise duty on non-silver Jewellery. Jaitley also mentioned that the excise duty is not valid for small traders but only for those with a Rs.12 crore turnover. They will also not be bothered by tax officials. Gems and jewellery industry has expressed disappointment over the government’s proposal to impose 1% excise duty on non-silver jewellery. It said the move would create difficulties for this industry which is already starved of profits. The Finance Minister talked about this when the industry raised a voice in favour of SMEs that are the largest producers of jewellery in the country. On Friday, the Gems and Jewellery Export Promotion Council (GJEPC) insisted the government to withdraw the excise duty on non-silver jewellery. The apex body of gems and jewellery felt the imposition of 1% excise duty would impact jewellery production in India which in turn would create a problem for the uneducated but skilled jewellery workers. On the other hand, Jaitley stated that this proposal is applicable to principal traders not to the jewellery makers. During a debate in the Lok Sabha, various MPs raised the Jewellery issue and wanted excise duty on jewellery to be withdrawn immediately. However, the Minister did not relent. He categorically stated that there would be no revision in the duty set.
March 15, 2016 | 04:10pm IST
to success.