Finance Minister, Pranab Mukherjee has agreed to reconsider the issue of excise duty on unbranded jewellery and to come up with an ‘acceptable solution’. He has however categorically ruled out the possibility of a roll back on the increase in import duty of gold and platinum.
Jewellers in Maharashtra and Gujarat went on strike after the FM imposed a 1% excise duty on unbranded jewellery. The strike entered its 11th day on March 27. With no sign of the industry softening in its stance the FM has agreed to look into the matter and come with an acceptable solution. He has also stated that harassing the small jewelers was not his intention.
He has however denied the possibility of a roll back of the hike in excise duty on gold and platinum. The FM in the Union Budget 2012-13 has hiked the import duty on these precious metals from 2% to 4%. This has been justified on the stance that gold imports have seen a recent surge in their imports to the extent that they are second only to the oil imports. Since investments in gold are considered to be a dead investment, the FM has hiked the duty to discourage the same.
India is the world's biggest consumer of the yellow metal, with an annual consumption of over 900 tonnes. The country imported gold worth $46 billion last fiscal, nearly equivalent to its current account deficit, prompting policymakers to call for measures to curb its import.
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