Enhancement of customs duty from 2 percent to 4 percent on import of standard gold bars would make import gold costlier in the country and prompt smuggling of gold jeopardizing the interests of genuine traders and in the process escalate the price of gold and gold jewellery much to the chagrin of the women folk throughout the country.
Extension of one percent excise duty levy on unbranded jewellery has severely rattled lakhs and lakhs of self employed traditional goldsmith families engaged in making gold jewellery. Although, the tax incidence would only be nominal, uneducated goldsmiths and jewellery traders would be subjected to severe hardships and are ill-equipped to comply with the required cumbersome procedural formalities. No tax should be levied unduly beleaguering and tormenting any particular The condition, that purchasers of bullion and jewellery should mention their Permanent Account Number (PAN) and the seller should collect Income Tax at Source (TCS) on purchase in case
of bullion or jewellery in excess of RS. 2 lakhs would literally wipe out gold jewellery trade in our Our govt. has no scheme for safeguarding the interest and welfare of those engaged in trade and industry or employment who are unable to generate any revenue or continue their business / industry or pursuits due to heavy loss or old age or sickness. Hence our people are forced to save and make investments to sustain themselves during such contingencies. Our Finance Minister should realize that in our country people invariably prefer making investment only in gold to safeguard themselves during such contingencies. Farmers do not posses PAN as there is no need for them to acquire it.
Hence this kind of persecutions and pestering stipulations will render a telling blow on the survival of gold jewellery trade and seriously frustrate the general public.
This three pronged attack in the Budget by the Honorable Union Finance Minister on jewellery trade has forced the jewellery traders across the country to resort to agitations. Tamilnadu Chamber of Commerce and Industry without any reservation support their legitimate demands.
we are glad to note that the Union Finance Minister has now agreed to positively consider their demands. We make an emphatic appeal to our Honorable Union Finance Minister to totally withdraw all the three new tax proposals.