Gujarat Chief Minister Narendra Modi has demanded the Centre to immediately draw back one percent excise duty from non-branded gold/other precious stone jewelry and the TDS on the purchase of jewelry over Rs.2 lakh, which was introduced by the Central government in the latest budget.
Referring to the severe indignation of the jeweler fraternity and the representations made before the State government since last few days Mr. Modi said these taxes has resulted into a loss of business of approximate Rs. 16,000 crore in Gujarat alone during last ten days due to the strikes in this sector. Around four lakh skilled workers of the country who were employed in making gold jewelry have become jobless.
Chief Minister stressed that gold-workers do job-work as per the demand of their clients. And so, there is a need to distinguish between job-work and manufacturing. Taking one percent excise duty will once again open the door for ‘Inspector Raj’ in the country. About 90% of the total output of this field comes from small scale sector and thus it is the most employment-giving sector. Chief Minister also demanded to draw back TDS as well as quoting PAN on the purchase of gold jewelry over rupees two lakhs.