Pranab to meet jewellers to discuss duty hike issue

Mumbai: In an effort to break the deadlock over the recent hike in duties affecting the gems and jewelery industry, Finance Minister Pranab Mukherjee will meet industry representatives in New Delhi on Friday.

"The meeting has been called to discuss the issue of rollback of excise duties, TCS and customs duties levied in the latest union budget. We shall make all efforts to convince him for ordering a 100 percent rollback," All India Gems & Jewellery Trade Federation (AIGJTF) Chairman Bachhraj Bamalwa said.

[caption id="attachment_268047" align="alignleft" width="380" caption="Mukherjee had hiked the import duty on gold bars, coins and platinum from two to four percent. PTI"][/caption]

In the budget, Mukherjee had hiked the import duty on gold bars, coins and platinum from two to four percent and levied one percent excise duty on unbranded jewellery.

This has led to the jewellery trade being shut down since 17th March, terming the new levies "unviable".

The AIGJTF made two representations to the finance ministry explaining the difficulties encountered by them and sought a complete rollback of the new proposals, prompting Mukherjee to assure that the government would set an "acceptable formula" on these proposals.

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"However, Vivek John, Joint Secretary, Tax Research Unit-1 of the ministry has said that the issues raised by us are being examined by the Central Board of Direct Taxes and would be clarified shortly. But this is just a temporary relief and not acceptable to us," Bamalwa said.

Until then, the AIGJTF has decided to continue with its ongoing agitation, he said.

IANS