FM Arun Jaitley rules out withdrawal of 1 per cent excise duty on gold

Refusing to budge under pressure, Finance Minister Arun Jaitley on Thursday stuck to government’s stance of levying one per cent excise duty on non-silver jewellery, including gold.

Replying to a debate on the Finance Bill 2016 which was later passed in the Lok Sabha, Jaitley said the excise duty was not applicable on small traders and artisans, and only jewellers with more than Rs 12 crore turnover will attract the duty.

“I have not been able to understand the politics of hatred for ‘suit’ but love for gold,” he said as he took potshots at Congress which is opposing the levy of excise duty on gold and other previous jewellery.

If the Congress had objections to the levy, it can begin by removing the 5 per cent VAT on bullion in Kerala where it rules, he said.

The government has asked the jewellers to settle the excise dues for March-May along with that of June and get themselves registered with the central excise department by July 1.

Jaitley had in Budget on February 29 imposed 1 per cent excise duty on non-silver jewellery which led to widespread protests by jewellers.

The agitation, however, was temporarily called off on April 13 following assurances from the government that there will be no harassment by tax officials.

The Madras High Court on April 29 had ordered status quo till June 3 on a central notification proposing to levy excise duty on gold jewellery. The Coimbatore Jewel Manufacturers Association filed a petition seeking a direction to quash the central excise notification dated March 1.

Earlier, Jaitley had asserted that there was absolutely no harassment of artisans and said corporate jewellers with upto Rs 12 crore turnover last year came under its ambit and upto Rs 6 crore turnover in a fiscal later are exempt from it.