Budget 2016 fallout: Jewellers may call for pan-India strike to protest excise duty levy

Gems and jewellery associations have called for an indefinite strike starting Tuesday, according to several media reports. 

The gems and jewellery sector has expressed disappointment over the government's proposal to impose 1% excise duty in Budget 2016, saying the issue of mandatory PAN card was also not addressed.

While All jewellers association in Kerala have gone on strike from Tuesday, the Indian Bullion and Jewellers Association (IBJA), based in Zaveri Bazaar, called for a strike in Mumbai, said that they will ask jewellers across the country to join the protest. 

The industry, one of the highest employment providers, is already struggling to survive with small jewellers shutting shops and artisans losing jobs.

Finance Minister Arun Jaitley on Monday proposed a 1% excise duty on jewellery without input credit or 12.5% with input tax credit on jewellery, excluding silver other than studded with diamonds and some other precious stones.

"We have called a meeting with all jewellers associations across the country and will take a call on going on strike," All India Gems & Jewellery Trade Federation (GJF) Chairman Sreedhar G V told PTI. 

"The entire industry is disappointed with the government's apathy towards the gems and jewellery sector. We were already facing challenges after the government's decision in January to make PAN cards mandatory for any transactions of Rs 2 lakh and above," he said.

Even after giving representations to the Finance Minister and explaining challenges that the sector is facing, the government has not done anything to boost the industry, he said.