This has been a never ending nightmare for the jewellers and even more for the people who had to buy gold ornaments for marriage. In Belgaum as well the gold shops are closed even tough they were open for a couple of days are now shut from April 1 as per the Gems and Jewellers Trade Federation bandh call.
Yesterday Klayan jewellers had opened its shop and local association gathered and forced them to close the shop.
Why the bandh:
Jewellers say that the proposals in the Budget will shrink business by 25-30%. According to them, customs duty has quadrupled in two months. Basic custom duty on standard gold bars is up from 2% to 4%. Customers will now have to shell out at least Rs.250 more on unbranded jewellery of 10 gm and Rs.550 more on gold bars of 10 gm.
The Budget also provisions an 1% excise duty. Customers who purchase in cash of over R2 lakh are required to pay a 1% income tax at source and the jeweller is required to remit to the government. Jewellers say this will increase their paperwork, as well as burden them with increased government hurdles. A term in this regard that has become part of most of the slogans and posters across the country during protests is the ‘Inspector Raj’ that bullion merchants and retailers believe will happen if the proposals come into play.
