Budget 2012: Jewellers adamant on excise rollback

Irked over the no-response from the finance ministry to the demand of rolling back 1 per cent excise duty on unbranded jewellery, the jewellers who have been striking from last Saturday extended the protest till Sunday.

They were supposed to call off the strike on Thursday, and the protest is now mostly centred on the excise duty part and not on the doubling of the customs duty, indicating that a price spike of the precious metal is on the anvil.

The strike is causing an average Rs 1,000 crore loss a day, and if it continues, the industry expects the losses to top Rs 10,000 crore.

"Jewellers across the country are disappointed with the lack of understanding from the finance ministry over the difficulty that will arise from the Budget proposal to bring them under the excise net. Therefore, many associations have decided to continue their strike till Sunday and many, indefinitely. We are supporting them," All-India Gems & Jewellery Trade Federation chairman Bachhraj Bamalwa told PTI.

The jewellers today met the excise officials to understand the process, he said, and found that it is very complex and difficult to comply with it. "We also tried the online process, but found that to be equally cumbersome."

According to reports from various regions, over 90 per cent jewellers are participating in the strike, he claimed.

Bamalwa, however, said the federation is working on the representation on its demands as asked by the finance ministry, and will present it next week.

Bombay Bullion Association president Prithivraj Kothari said the main demand is unhooking them from the excise net.

"We are striking till this Saturday and we will take decision on further course of action depending on the response we get from the government."

Meanwhile, there were also reports of jewellers holding candle-light marches in various parts of the country.