The Hindu Business Line : TN jewellers down shutters in protest against Central levy

Jewellery shops in Chennai downed shutters from 4 p.m. on Thursday joining the protest against the proposal to levy 2 per cent Central excise duty on branded jewellery. - Bijoy Ghosh

Chennai , March 3

IN protest against the 2 per cent Central excise duty on branded jewellery announced in the Union Budget, jewellers in Tamil Nadu are shutting shops for two days, starting from 4 p.m. on Thursday.

Three associations, the Tamil Nadu Jewellers Federation, the Madras Jewellers & Diamond Merchants Association and the Gold Club of Chennai have come together to demand that the levy of Central Excise is rolled back.

Mr L.K.S Syed Ahmed, President, Madras Jewellers & Diamond Merchants Association, said that the Central Excise Department had interpreted the word "branded'' as any marking either of the manufacturer or hallmarking on jewellery. He said that the manufacturer's marking on a piece of jewellery was an age-old custom and helped in identifying the jewellery.

Mr Ahmed said that hallmarking of jewellery had ensured that the customers were getting quality products. If this levy is not rolled back, substandard products would come into the market.

Mr Tushar Mehta, Chairman, Gold Club of Chennai, said that the Empowered Committee for the implementation of VAT had studied the jewellery trade and had decided to keep VAT at 1 per cent.

He said that this was one of the few businesses where 85 to 90 per cent of the value of the product came from the raw material. Jewellers worked on "survival margins", he said.

The levy would affect the livelihood of more than five million goldsmiths across the country and the lives of the 20 million who were dependent on the gem and jewellery business, Mr Metha said.

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