one percent excise duty on gold, diamond jewellery to hurt industry - imitation jewellery earrings
New Delhi, February 29 (ANI)
: Finance Minister Arun Jaitley on Monday announced a 1% consumption tax on gold and diamond jewelry, a blow to the industry.
Gold and silver jewellery Association of India (IBJA)
There is concern that the consumption tax will result in unemployment in the gem and jewelry industries.
As the government raised the basic tariff on imported imitation jewelry from 10% to 15%, the domestic imitation jewelry industry was promoted.
The size of the imitation jewelry is around rupees.
The growth rate of Rs 1200 billion is between 25% and 30%.
China and South Korea already account for 30% of India's imitation jewelry market.
In his budget speech today, Jaitley proposed a 1% consumption tax on jewelry that did not enter credit or 12.
5% consumption tax with input credit.
IBJA said the consumption tax on jewelry would cause more trouble for the already hungry industry.
The association believes that about one crore craftsman works in the industry and most of them may be out of work.
However, the economic survey submitted last Friday suggested a higher tax on gold.
At the same time, after the announcement, gold rose slightly 1% on MCX.
The contract for April was traded in Rs.
In submitting the budget and correcting the budget to Rs, £ 29,738 per 10 GM.
29,590 shortly after the Budget speech(ANI)