 "Jewellers propose 1% rise in import duty, excise removal")
Bullion dealers and jewellers, on strike this week against the proposal for additional excise duty on jewellery, have proposed a settlement formula.
They suggest an increase in the customs duty for gold import by one per cent and removal of the duty on jewellery as proposed in the Union Budget on Monday.
Surendra Mehta, secretary of India Bullion and Jewellers Association (IBJA), says 61 per cent of gold import is used for jewellery. If the import duty is increased by one per cent, that would generate Rs 2,125 crore of annual revenue for the government. By comparison, the proposed one per cent excise duty on jewellery will generate annual revenue of Rs 1,650 crore.
They have support from Union road transport and highways minister Nitin Gadkari, after a delegation from his home state, of the Maharashtra Rajya Saraf Suvarnakar Federation, met him. Gadkari has asked Finance Minister Arun Jaitley to review the move.
Milind Deora, Member of Parliament and former minister, has also written to Finance Minister Arun Jaitely, requesting him to consider removing excise on jewellery. He said the health of the industry is not good, and gold importers are selling it at a huge discount to reduce inventories.
IBJA says the strike might be asked to go on till the proposal in the Budget is withdrawn. Shops were closed on Wednesday. Gold with 99.5 per cent purity closed at Rs 28,710 per 10g, compared to Tuesday's close of Rs 29,040 for 10g. The price closed on Monday at Rs 29,150 per 10g, the highest since May 2014.
They suggest an increase in the customs duty for gold import by one per cent and removal of the duty on jewellery as proposed in the Union Budget on Monday.
Surendra Mehta, secretary of India Bullion and Jewellers Association (IBJA), says 61 per cent of gold import is used for jewellery. If the import duty is increased by one per cent, that would generate Rs 2,125 crore of annual revenue for the government. By comparison, the proposed one per cent excise duty on jewellery will generate annual revenue of Rs 1,650 crore.
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IBJA had called a three-day strike from Tuesday to oppose the Budget proposal. It would, says the trade, affect 300,000 jewellers and four million artisans. Implementation would also be cumbersome.
They have support from Union road transport and highways minister Nitin Gadkari, after a delegation from his home state, of the Maharashtra Rajya Saraf Suvarnakar Federation, met him. Gadkari has asked Finance Minister Arun Jaitley to review the move.
Milind Deora, Member of Parliament and former minister, has also written to Finance Minister Arun Jaitely, requesting him to consider removing excise on jewellery. He said the health of the industry is not good, and gold importers are selling it at a huge discount to reduce inventories.
IBJA says the strike might be asked to go on till the proposal in the Budget is withdrawn. Shops were closed on Wednesday. Gold with 99.5 per cent purity closed at Rs 28,710 per 10g, compared to Tuesday's close of Rs 29,040 for 10g. The price closed on Monday at Rs 29,150 per 10g, the highest since May 2014.