It refers to the on-going strike by jewellers and bullion-merchants against re-imposing of excise duty on non-silver jewellery which was earlier also imposed but rolled back in the Union Budget for the year 2012-13 by the then Union Finance Minister Pranab Mukherji who now happens to be President of India. Role of several state governments including especially West Bengal Chief Minister Mamta Banerjee at that roll back in the year 2012 was crucial because most of the artists involved in crafting jewellery are from Bengal. Creating hurdles in crafting jewellery will not only create problem of unemployment amongst jewellery-craftsmen, but even result in ultimate dying of this ancient Indian handicraft-industry which is also a source of export-earnings for India.
Central government should roll back excise duty on non-silver jewellery which is mainly imposed to check role of black money where excise duty projected to be collected from non-silver jewellery will be less than expense made on collecting the same. Jewellers are opposing imposition of excise duty on non-silver jewellery only because of undesired Inspector-Raaj practically unavoidable after imposition of excise duty on non-silver jewellery!
To check role of black money in gold and jewellery and to reduce import of gold, other measures can and must be adopted. Gold jewellery may be required to be crafted in maximum 14-carat purity. Import of gold may only be allowed by private and public-sector banks which may sell imported gold in form of import to desiring ones including commercial firms and jewellers only by payment made through banks on providing PAN numbers at some nominal profit. Even states can have a higher VAT-rate on jewellery items. PAN-number of customer may be required for purchase of jewellery exceeding rupees one lakh.
Gold for general public should be sold only in round-shaped coins of maximum 10 gms by public-sector Mineral and Metal Trading Corporation of India Limited (MMTC) through counters of MMTC, post-offices and banks in different designs altogether banning sale of gold in round-shape coins except those minted by MMTC. MMTC can thereafter mint special gold and silver coins to commemorate occasions. MMTC through its private franchise can even book order for gold or silver coins for private occasions like marriages.
