New policy will propel us to collapse: All India Gems and Jewellers Trade Federation on excise duty

New Delhi, Feb 29 (KNN) The General Budget presented today in Lok Sabha by the Union Finance Minister Arun Jaitley unraveled the proposal to impose an excise duty on articles of jewellery.

It was proposed to impose an excise duty of 1 percent without input tax credit or 12.5 per cent with input tax credit on articles of jewelry. It, however, excluded silver jewellry, other than studded with diamonds and some other precious stones, with a higher exemption and eligibility limits of 6 crore and 12 crore respectively.

The jewellery associations, however, seem to be upset with new proposal. “The entire fraternity of jewellers is upset. The industry is highly unorganized,” said J V Shridhar, Chairman, All India Gems and Jewellers Trade Federation.

“The new policy will ultimately propel us to collapse. The impact on the jewellers would be serious” he added.

Shridhar further said that the jewellery industry consists of only 1 per cent manufacturing and almost 80-90 per cent of the sector is unorganized. 

Meanwhile, some of the associations are awaiting the impact of the newly introduced policy depicting full faith in the Modi government and its motives.

“Pros and cons of the policy can’t be declared right now. We are awaiting the impact the proposal has on the industry,” said Satish Chand Singhvi, President, Delhi Jewellers Association.

“We have full faith in Modi government and its policy initiatives” he added. (KNN Bureau)