Jewellers protest turns violent; strike enters 18th-day

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SME Times News Bureau | 03 Apr, 2012
Eighteen-day long agitation by gold and jewellery traders against excise duty hikes in the Budget turned violent as protesters clashed with the Police in Mumbai and disrupted trains in Ghaziabad on Tuesday.

A clash leading to a lathicharge was witnessed in Mumbai, while traders blocked several trains at Ghaziabad in Uttar Pradesh, reports media.

Most jewellers and gold traders are on strike since the Finance Minister Pranab Mukherjee in his budget proposals on March 16 imposed impose 1 percent excise duty on all unbranded jewellery and doubled the import duty to 4 percent on gold. He also announced TDS of 1 percent on any purchase of jewellery above Rs 2 lakh.

Striking associations in different part of the country have collectively decided to go for a complete closure of bullion markets in major as well as small towns and staged 'dharnas'.

Thousands of jewellers and workers in the industry staged a dharna at Jantar Mantar in New Delhi on Monday extending support to the indefinite strike call given by different associations in the country.

Haresh Soni, President, Gold Souk Mall Jewellers Association, said in a statement that establishments of gems and jewellery traders in Gurgaon (in Haryana) remained closed as part of the strike.

All India Sarafa Association President Sheel Chand Jain said the strike will go on for an indefinite period until the government roll backs the taxes imposed on the bullion trade.

The government had proposed a hike in import duty on gold bars, coins and platinum to 4 percent from 2 percent, after doubling the tax in January.

The gold, diamond and silver jewellery industry nationwide has suffered a turnover loss of about Rs 22,000 crore till April 02, said Vimal Kumar Goel, president of Delhi Bullion and Jewellers Association. In Delhi alone, he pegs the figures at Rs 350 to 400 crore per day.

"Even the government has lost out on several hundred crores in revenue from custom duty, VAT and income tax. In the same frame of time, they would have fetched only about Rs 25 crore from excise duty," says Goel.

Traders have also warned that imposition of higher levies may lead to heavy paper work for small jewellers and a rise in retail gold prices by over 6 percent, which is seeking to rein in a widening current account-deficit.

"The import of gold and silver has fallen significantly while the demand is gathering momentum for the ongoing marriage season," said Vijay Verma of Jeweller Trade and Welfare Forum in Delhi.

He said imposition of excise duty on unbranded jewellery would increase paper work for small jewellers and add to costs.