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Protesting the recent proposed hike in VAT on jewellery from 1 per cent to 2 per cent by the Karnataka Government, jewellers in the city have decided to close their retail shops tomorrow.
Under the auspices of the Jewellers Association Bangalore (JAB), more than 1,000 jewellers in the city would also stage a protest march from Mahatma Gandhi statue to Vidhan Soudha, the seat of power, tomorrow.
The jewellers' associations had submitted a memorandum to the Chief Minister, Mr B.S. Yeddyurappa, some days ago requesting a roll back of VAT from two per cent to the earlier 1 per cent.
“The new VAT regime comes into force on April 1, 2011. However, since the government has not offered any positive respite, the jewellers have decided to intensify their protests with the closure of all retail showrooms and also undertake a protest march,” an Association release said.
The JAB President, Mr Pathi Mahesh, said, “Higher rate of tax will lead to lower compliance and loss of revenue to the State. It will also cause irreparable and permanent damage to the gems and jewellery sector in Karnataka. Entrepreneurs from other States will be discouraged to set up business here.”
The JAB Secretary, Mr S. Venkatesh Babu, said, “If the Government insists on 2 per cent VAT, manufacturing will move out of Karnataka and as a result, we expect more than 50 per cent of labour force to move to neighbouring States or become jobless. Therefore employment in Karnataka will also be affected.”
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