In a letter to the central government, Gujarat chief minister Narendra Modi has demanded an immediate roll back of budget proposals for imposition of one per cent excise duty on non-branded gold jewellery.
In his letter, Modi expressed concern of a possible emergence of 'inspector raaj' in the country and rise in smuggling of gold. According to Modi, most of the unbranded jewellery makers do outsourced work and make customised jewellery as per demands from the customers. Hence, there is a need to make a distinction between manufacturing and job work, the Gujarat CM said.
"The imposition of one per cent excise duty on non-branded gold jewellery would bring the ills of 'inspector raaj' back in the country," Modi wrote in the letter.
He also opposed making permanent account number (PAN) compulsory for purchase of gold jewellery amounting to more than Rs two lakh.
In the interest of the jewellers and traders engaged in non-branded gold jewellery, the said recommendations in the budget should be rolled back with immediate effect, Modi noted in his letter.
