Jewellers call off 21-day strike after meeting with Pranab

Mangalore Today News Network

New Delhi, Apr 6, 2012 : Jewellers from across the country have called off their 21-day-old strike, after a long meeting with Finance Minister Pranab Mukherjee on Friday.

A delegation of jewellers lobbied first with Congress president Sonia Gandhi and then Mr Mukherjee to drop a proposed levy of excise duty on unbranded jewellery and a proposed increase in the import duty on gold. They carried to that meeting with Mr Mukherjee a statement of support from his own party, the Congress, which asked him to “consider the demand of jewelers sympathetically".

“The Finance Minister has assured whatever best is possible will be done,” a member of the delegation that met Mr Mukherjee said after the meeting. Sources said the minister has promised good news but has highlighted the need to follow protocol which means that any changes to his proposals will have to be cleared by Parliament.

 The strike has resulted in losses of Rs 20,000 crore, the All India Gems & Jewellery Trade Federation (GJF) claims.

The strike began after Mr Mukherjee presented the Union Budget in Parliament last month. He had cited the rising current account deficit as the reason for doubling the import duty on gold from 2% to 4%. For unbranded jewelry, the Finance Minister has proposed a levy of 1% excise duty on 30% of a transaction or purchase value. So, if a customer buys unbranded jewellery worth Rs 10,000, the 1% excise duty will be calculated on Rs 3,000 and not on Rs 10,000.

 

Any rollback can only be effected when the Finance Bill is tabled and discussed in Parliament. The Budget session will reconvene after a recess later this month and the Budget is expected to be tabled on May 7.

Mr Mukherjee had earlier indicated that while he would be open to discussing the excise duty he proposes to levy on unbranded jewellery, he made it clear that there there would be no going back on the hike in import duty on gold. That hike has been made citing the need to address the rising current account deficit.

Before meeting Mr Mukherjee, a delegation of jewellers met Congress president Sonia Gandhi at her home. The Congress, which leads the UPA government at the Centre, issued a statement saying, “The Congress has asked the government to consider the demand of jewellers sympathetically."

 
Jewellery shops in different cities have refused to open for business for several weeks.

 

 

Courtesy: Deccah Herald