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Bullion and jewellery markets remained closed for eight straight today in various parts of the country to protest imposition of excise duty on unbranded jewellery and doubling of import duty on gold.
While jewellery showrooms kept their shutters down and sat on ‘dharna’ in several parts of the country, the All India Sarafa Association has written to the Congress president and UPA chairperson Ms Sonia Gandhi to look into the matter.
“We requested Ms Sonia Gandhi as a last resort to save interest of nearly five lakh small dealers of gold jewellery, agitating against imposition of fresh taxes,” said Mr Sheel Chand Jain, President, All India Sarafa Association, which had earlier written a letter to the Finance Minister Mr Pranab Mukherjee demanding roll-back of the budgetary proposals.
Way back in 1981-82, a similar step of imposition of excise duty on gold jewellery was proposed which had to be withdrawn, added Mr Jain.
Traders are protesting against the budget proposal imposing excise duty of one per cent on unbranded precious jewellery and doubling of customs duty on standard gold bars and coins to four per cent.
Market sources claimed that the industry has lost business of over Rs 10,000 crore in the last seven days, including Rs 750 crore yesterday on the auspicious new year of ‘Gudi Padwa” in Mumbai alone.
A crowd of nearly 5,000 jewellers and their workers demonstrated in Karol Bagh in central Delhi — the second largest market of bullion in the capital.
“The government may impose one per cent tax in the form of value added tax instead of levying excise duty,” Karol Bagh Jewellers Association general secretary Mr Rakesh Saraf said.
Retail jewellers brought under the excise net by the recent budget proposal were more worried and requested shifting of duty to another form.
“The imposition of excise duty will restrict business of small bullion traders by increasing paper work for maintaining records and tax formalities,” said All India Jewellers Associations Forum President Sri Krishan Goyal.
However, jewellers in Kolkata and Chennai opened establishments for regular business.
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