Jewellers to continue strike, limiting tax to big earners made no difference

New Delhi, Mar 5 (KNN) With the Jewellers associations on strike for three consecutive days opposing the levy of excise duty, the government tried to bring down the upsurge by declaring that 1 per cent levy on non-silver articles would be only for jewellers with Rs 12 crore turnover.

Various Jeweller associations condemned the clarification given by the government stating that they want a complete expulsion of Excise duty and putting a limit would not make a difference to the jeweller’s decision.

“The Jewellery Industry is not organised in India. With the implementation of Excise duty, it would be a lot of burden on the jewellers , and in an unorganised sector such as ours, it would be difficult for us to manage. Also, the corruption would pose a threat to us” said Pavan Jain, Jainson Jewellers.

Jain further mentioned that if government wants to increase the tax revenue, they could have increased the import duty or custom duty. “The import duty on gold has been increased from 4 per cent to 10 per cent in past. A further increase in import duty would have been acceptable to us” Jain added.

Tracing that the jewellery outlets have increased tremendously pushing the sales per outlet down, the excise duty would act as an accelerator to their pressure.

G V Shridhar, Chairman, All India Gems and Jewellery Trade Associations quoted his views saying, “The new statement by the government is just the clarification of the previous proposal made in Budget. Imposing limits to the levying of tax would make no difference to our demands and decision to stay on strike”

He further clarified that the industry wants the complete abolition of Excise duty. “Coming of excise duty would add another department to our paperwork. Also, it would create a pressure on the pockets of jewellers. Thus, we don’t want the excise duty to come into act. The strike would go on till Monday as stated” he uttered.

Furthermore, the small traders in jewellery industry are also continuing with the strike as they believe that the policy should be abolished completely for the betterment of the entire industry, and not only the small jewellers.

“Though we don’t come under the bracket of ’12 crore’ turnover, but we won’t call off the strike from our side as the benefit should be extended to the entire industry and not a certain part of it” said Rashmi, Anami Jewellers Pvt Ltd. “They could have increased the VAT for raising revenue but setting up of an entire department via excise duty would harm the industry. Also, it would initiate the inspector raj which would be very unfair” she added. (KNN Bureau)