Hyderabad: Protesting against the one per cent excise duty levied on gold jewellery and diamond-studded gold ornaments in Monday’s Union Budget, jewellers across the city observed a closure on Wednesday.
Shops and other establishments will remain shut for two more days, protesters said. Vice-president of the Twin Cities Gems and Jewellery Association, Satish Agarwal, said if the government did not withdraw excise duty, jewellers across the country would go on an indefinite strike.
Such an excise duty had been levied in 2012 by then finance minister under the Congress rule, P. Chidambaram but it was rolled back after a 21-day strike by jewellers.
“The closure will affect the tax and duty collections. The gems and jewellery sector is the largest contributor to exports and forms a major component of the Gross Domestic Product,” he said.
He said the introduction of Excise duty would usher in ‘inspector raj’ and harassment of jewellers by Excise officials. The increase in international prices of gold, the rise of the US dollar and increase in customs duty on gold have cast their shadows on the industry. “The introduction of Excise duty will kill it,” Mr Agarwal said.
The jewellery industry had requested the government for a reduction of the 10 per cent customs duty to six per cent, but the government rejected the plea, association members said.
Jewellers are already upset with the government for making PAN data mandatory for all purchases above Rs 2 lakh.
