Chennai: A jewellers' association here today temporarily called off its strike following the Centre's assurance that it will review the Budget proposal to impose 1 per cent excise duty on gold ornaments.
"We have temporarily called off our strike after Finance Minister and government officials agreed to review the matter...," Madras Jewellers and Diamond Merchants Association President Jayantilal Challani told PTI.
Gold and diamond traders had earlier gone on a three-day strike on March 2, which was later extended till March 7.
Around 36,0000 jewellery showrooms were shut in Tamil Nadu and Puducherry and 12 lakh employees were participating in the strike, the association said.
He said about Rs 2,000 crore worth of business had been affected due to the strike in the region.
Challani said gold traders will meet in Mumbai tomorrow and decide on the future course of action.
"Since we have decided to temporarily call off the strike, all the showrooms will be opening immediately. Tomorrow there is a meeting of the association members in Mumbai.
We will be deciding our next course of action in that meeting," he said.
All India Gem and Jewellery Trade Federation's Regional Chairman Anantha Padmanabhan said , "Tomorrow's meeting will be on how to take the issue forward and what would be our strategy if the government continues to be firm on its stand."
In Union Budget 2016-17, Finance Minister Arun Jaitley had proposed 1 per cent excise duty (without CENVAT credit) or 12.5 per cent (with CENVAT credit) on non-silver jewellery.