Jewellers protest against excise duty

More than 400 members of the Karnataka Jewellers’ Association on Tuesday demonstrated against the proposal in the Central Budget 2012 to levy excise duty, customs duty and consumer tax on jewellery.

The customs duty has been raised to four per cent from two per cent; one per cent rise in excise duty on precious jewellery, especially on the branded variety, has been effected.

T A Saravana, president of the Association, and board members submitted a memorandum to the governor on behalf of all the jewellers and goldsmiths of the State.

They had a collective opinion that imposing excise duty on gold would only restrict business of small bullion traders and jewellers by increasing the paper work for maintaining records and formalities, and this in turn could lead to the rise of ‘licence raj’.

They said the proposed increase in import duty would lead to unchecked smuggling of the metal. They also demanded the increase in import duty be withdrawn. The increase in excise duty would mean a six per cent rise in retail prices, which would be a huge burden on the common man.