Jewellers to call on PM, demand rollback of excise duty

New Delhi: The jewellery manufacturers who have been on a strike are likely to meet Prime Minister Narendra Modi to demand rollback of 1 per cent excise duty imposed in the 2016-17 Budget.

"We have a meeting with the Prime Minister on Wednesday. The time is yet to be finalised," said Rahul Gupta, CEO of PP Jewellers.

Gupta is also the Vice-Chairman of Export Promotion Council for EoUs and SEZs.

The government's decision to levy 1 per cent excise duty on jewellery had evoked sharp reaction from the jewellers, who have been on strike for 34 days. The jewellery industry has been demanding rollback of excise duty hike.

The government has set up a sub-committee under former chief economic advisor Ashok Lahiri to look into the problems of jewellers and suggest ways to eliminate harassment.

The finance ministry has already clarified that the 1 per cent levy will be only for jewellers with Rs 12 crore turnover and not small traders.

It has also said artisans and job workers are not covered by this duty and thus they are not required to take registration, pay duty, file returns and maintain any books of account.

"A luxury item must pay its share of taxes. So on procedural harassment, if they have any suggestions, I am willing to accept for simplification so that there is no harrasment... I am willing to take an extra step. But indefinitely, India cannot have a situation where luxury items go untaxed," Finance Minister Arun Jaitley had said.