The Confederation of All India ( CAIT ) file landing its support to National Strike of All India Jewellers in protest against levy of 1% Excise on manufacturing of Gold & Diamond Union Budget, has also said that revenue generation is also necessary but excise is not only augmentation of revenue is all the more necessary but levy of excise is not the only solution & other options can be worked out by talks between Trade & the Government.
CAIT National President Mr. B.C. Bhartia & Secretary General Mr. Praveen Khandelwal said that there could be many other alternatives for augmentation of revenue. Which will protect not only the interest of Traders but also of the Govt. The leaders call upon Mr. Jaitely to began the process of the dialogue so that issue can be resolved.
As per an estimate during the 6 days strike period there is a business loss of about Rs.6000 crores of rupees which further resulted into a revenue loss of about 200 crore in shape of custom duty and about 48 crores as VAT tax all over the Country. India is importing about 970 M/T Gold per year. It is interesting to note that about 45% import of gold is used for making jewellery. The above facts clearly reflects a position where the Government is losing huge amount of revenue each day, the traders are holding strike.
CAIT while calling attention of the Union Finance Minister said that in the year 1962 Gold Control Act was issued which resulted into huge increase of gold smuggling in the Country which later the Government realised and in the year 1990, the Gold Control Act was withdrawn. The said withdrawal of Gold Control Act prompted for more gold business in India and the revenue of the government stood increased as well. It amply reflects the fact that when ever the sale of gold is subject to pressure of taxes, the gold smuggling gets a boost.
CAIT further said that the Gold has been considered as the most safe option for saving investments by majority of people in the Country. The levy of excise duty, levy of TCS, levy custom duty and levy of VAT on prices of gold will make it a costly option now and will deviate the consumers from prefereing gold as the prime object of investment which will result into loss of gold business in the Country and lakhs of small artisans and small traders across the Country will be adversaly affected.
CAIT has urged the Union Finance Minister to carve out a mechanism to withdraw the levy of excise on gold. The CAIT has further suggested that to make an indepth study of the pros and cons of the levy of excise a high level Joint Committee comprising of senior officials and trade representatives may be formed which may draw the alternate methods of augmenting of revenue.