: Jewellery shops will be shut in the Capital on Wednesday as jewellers across the country are going on a three-day strike to voice their resentment against the imposition of excise duty on gold and diamond jewellery.
The strike is being taken quite seriously by jewellers in Delhi as scores of them have decided to come out in support by keeping the “shutters down” of their outlets.
Speaking to The Hindu , Krishan Lal Alreja, Regional Manager (North) of All India Gems and Jewellery Trade Federation said, “The government has to do away with the 1 per cent excise duty imposed on us. Most of the jewellery sellers are not registered, what are they supposed to do? We won’t relent.”
Besides the excise, the jewellers are also upset over the Centre making a PAN card mandatory for any purchase by a customer of Rs.2 lakh and above.
“The government has overlooked a major point in this. The highest demand for gold jewellery is among those residing in towns and villages, especially those who own land. These people often do not have PAN card and moreover, most customers are not comfortable in sharing documents while purchasing jewellery,” he added.
The strike could curb gold imports by the world’s second biggest consumer and put pressure on global prices. Earlier in 2005 and 2012, the government had introduced the excise duty on gems and jewellery industry. It was rolled back within a few days of inception.
“I don’t think it is a great start to Start-up India and Stand-up India campaigns because levying excise duty in an industry which is almost 80 per cent unorganised doesn’t make any sense. I request Arun Jaitley to reconsider it and do something in favour of the industry,” said Chitwn D. Malhotra, Director of Dillano Luxurious Jewels Limited.
According to Pritesh Goyal, Director and Designer, SLG Jewellers Private Limited, the traders are finding it difficult to cope with the “burden of formalities”.
“Customers who do not have PAN cards will then have to fill forms, which every jewellery store must keep. A copy of the Aadhaar card will also have to be taken from them. How is this ease of doing business? It is a lacklustre move and in spite of providing fiscal incentives, the sector is burdened with excise duty,” he said.
“In 2012, the industry had registered a nationwide 23-day protest by way of a Bandh, wherein the present ruling party had given their support,” added Mr. Goyal.
They are also opposing order on need of PAN card for purchases of
Rs. 2 lakh or above
