Protesting against slapping of additional tax on gold in the general budget presented by the Finance Minister Pranab Mukherjee on Friday, over 900 jewellery shops in Krishnagiri and Dharmapuri district downed their shutters for three days from Saturday as per the announcement of the strike call given by the All India Gems and Jewellery Trade Federation.
Union Finance Minister, in the budget presented on Friday, has proposed increase in excise duty on unbranded precious jewellery, and doubled the customs duty on standard gold and platinum from two per cent to four per cent.
Mr. R. Vijay Anand, District Secretary, Krishnagiri District Jewellers Association told The Hindu that over 470 small, medium and large shops closed their shutters as per the strike call given by the state office of the association.
Due to the strike, the jewellers will lose Rs. 2 to Rs. 3 crores of business in the district. The additional tax levied by the union government will reduce further purchasing power of the people, he adds. This will automatically cut down our business considerably, he opined.
“Gold has always been high value product and sale of gold jewellery has been declining because of the cost. Small and medium jewellers will have to shut the business with the imposition of new taxes,” he adds.
The next course of action would be initiated as per the announcement of the state unit of the association, he said.
About 437 small and big jewellery shops in Dharmapuri district also shut down their shops for three days from Saturday.
Keywords: Union Budget 2012-13, jewellery shops, strike
People in India give too much importance to gold, forgetting that it is
just another metal. Investment in gold is just a complete waste, with no
asset creation involved. Imposing a high duty is desirable, as the funds
can then be diverted into useful financial instruments. Let these shop-
owners close their shops forever.
If it is a loss making business they should close the shops permanently. This industry is one which evades maximum tax in the country. Hardly 10 % of the sales are recorded and the business is awash with unaccounted funds. No one is going to starve if the industry closes down.
Gold jellery is a luxury that people can live without. It is not a necessity like food or medical care. During my last visit to India I saw more jwellery stores in T Nagar,Chennai than food stores or hospitals. Many families spend money on gold jwellery than on other necessities like childrens' education or dress. Many husbands are unable to please their wives' greed for jwellery and their marriages end up in divorce ! I shed no tears on incresed tax on gold. Let the shops close and save many families !
Finance Minister has not spared anyone in the proposed taxes. It is unreasonable to belive that he will not tax gold imports which are eating away forex and also raise taxes on luxury goods. This closure will aid Finance Mninster's cause and help customers to save some expense.
Please Email the Editor