CBEC allays artisans' fears over excise on jewellery

The CBEC clarified said there is no reason for goldsmiths and artisans to have any apprehensions as the government's proposed 1% excise duty on non-branded gold jewellery will have to be paid by manufacturers.

"As far as excise duty on non-branded gold jewellery is concern, we have...Liberalised way of implementing it. Goldsmith and artisan won't have to pay duty," Central Board of Excise and Taxes (CBEC) Chairman S K Goel told reporters here on the sidelines at an event organised by Assocham.

Goel further added that duty will have to be paid by the manufacturers of jewellery, and accounts will also be maintained by them.

Finance Minister Pranab Mukherjee in his Budget proposals for 2012-13 has doubled the basic customs duty on standard gold bars to 4% and non-standard gold to 10%. He has also imposed 1% excise duty on unbranded jewellery.

Protesting against the increase in excise duty and the doubling of customs duty on precious metals, bullion traders in several parts of the country had gone on strike.

Yesterday, Mukherjee had bluntly told bullion dealers, who have gone on strike against the levies on gold, that their pressure tactics 'will simply not work'.