 "Jewellers protest excise levy, call for indefinite strike")
Protesting the excise duty levy on gold and diamond studded gold ornaments, thousands of jewellers across the country have decided to go on indefinite strike from Tuesday.
While presenting the Union Budget in Parliament on Monday, the Union finance minister Arun Jaitley proposed 1 per cent of excise levy on all articles of gold and diamond, except silver jewellery.
Read more from our special coverage on "JEWELLERS,EXCISE DUTY"
According to industry sources, jewellers in the south Indian states including Kerala and Tamil Nadu have decided to go on indefinite strike. This decision was taken in a meeting of jewellers represented by leading jewellers' associations in these states. Informed sources said that the apex industry body All India Gems & Jewellery Association (GJF) is spearheading the indefinite strike.
"We dont have any option. We are not averse to the excise duty per se. What we are protesting is frequent harrassment by excise officials through raids and calling for irrelevant papers. More than 1 per cent of excise levy, the restoration of 'inspector raj' is the problem for jewellers. It (the excise duty) is levied, it will create lots of problems," said Mehul Choksi, Vice President of apex industry body India Bullions and Jewellers Association (IBJA) and managing director of Gitanjali Gems.
Interestingly, the excise duty was levied earlier in 2012 by the then finance minister Pranab Mukherjee. But, after 21 days of indefinite stike, the excise duty was rolled back nearly two months after the levy in 2012.
IBJA has called for nationwide bandh from March 1, 2016 onwards of gems and Jewellery sector in response to levying of excise on jewellery in the union budget 2016-17.
Clarification
An earlier version of this article wrongly stated that P Chidambaram, as finance minister, had levied excise duty on jewellery in 2012. It was Pranab Mukherjee who had levied it in that capacity. The error is regretted.
