Jewellers strike enters 17th day

The strike by bullion traders and jewellers continued for the 17th day on Monday to protest the proposed increase in import duty on gold and imposition of excise duty on unbranded jewellery. Most jewellery houses in the country are closed since Finance Minister Pranab Mukherjee, in his budget proposals on March 16, imposed one per cent excise duty on unbranded jewellery and doubled the import duty to 4 per cent on gold. Striking associations in different part of the country have collectively decided to go for a complete closure of bullion markets in major as well as small towns and staged ’dharnas’ Thousands of jewellers and workers in the industry staged a dharna at Jantar Mantar in New Delhi on Monday extending support to the indefinite strike call given by different associations in the country. Haresh Soni, President, Gold Souk Mall Jewellers Association, said in a statement that establishments of gems and jewellery traders in Gurgaon (in Haryana) remained closed as part of the strike. All India Sarafa Association President Sheel Chand Jain said the strike will go on for an indefinite period until the government rolls back the taxes imposed on the bullion trade. The government had proposed a hike in import duty on gold bars, coins and platinum to 4 per cent from 2 per cent, after doubling the tax in January. Traders have warned that imposition of higher levies may lead to heavy paper work for small jewellers and a rise in retail gold prices by over six per cent. “The import of gold and silver has fallen significantly while the demand is gathering momentum for the ongoing marriage season,” said Vijay Verma of Jeweller Trade and Welfare Forum in Delhi. He said imposition of excise duty on unbranded jewellery would increase paper work for small jewellers and add to costs. Keywords: bullion market, excise duty on gold