Jewellers in UP on indefinite strike, protesting excise duty

Bullion and jewellery traders in Uttar Pradesh, on strike since March 2 against the Budget proposal to re-impose 1 per cent excise duty on jewellery, have decided to extend the stir indefinitely.
Jewellers across the country have been protesting against the proposed excise duty imposition on jewellery items made in the Budget 2016-17 as well mandatory quoting of PAN by customers for transaction of Rs 2 lakh and above.
In a meeting of jewellers from the state, it has been decided yesterday to go on indefinite strike, President of Uttar Pradesh Sarafa Association, Mahesh Chander Jain told PTI.
Meanwhile, all jewellers in Meerut continued their strike for a sixth straight day, President of Meerut Bullion Traders Association, Ravi Prakash Aggarwal said.

Most of the bullion markets and jewellery showrooms have been closed since March 2 in major cities, including Delhi, Kolkata, Chennai, Mumbai.
"The budgetary proposal levying one per cent excise duty on jewellery would affect trade and wipe off the existence of small jewellers," Jain said.

The trade in the state is estimated to have incurred huge losses during the strike, he added.
"It has been decided that jewellers will not end their strike till the government rolls back the proposal", Jain added.
Finance Minister Arun Jaitley in the Budget for 2016-17 had proposed 1 per cent excise duty on jewellery without input credit or 12.5 per cent with input tax credit on jewellery excluding silver other than studded with diamonds and some other precious stones.

The Finance Ministry has clarified meanwhile that jewellers only with turnover of more than Rs 12 crore will be liable to pay 1 per cent excise duty on non-silver jewellery items.