FOR FAVOR OF PUBLICATION
FOR FAVOR OF PUBLICATION
Ref. No.: 2041/1/43
Hon'ble Minister for Finance
Government of India
New Delhi
Respected Shri Jaitley Ji,
Subject : All India Jewellers Strike
We crave leave to invite your kind and immediate attention to ongoing strike by jewellery fraternity of the Country in protest against budget levy of 1% Excise duty on manufacturing of gold and diamonds.
As your goodself rightly said in the budget speech that retail trade is largest employment provider in service sector and as such due priority needs to be given to this sector to augment its potential to its optimum level. It is gratifying to note that ensuring financial inclusion of the small businesses, the Hon'ble Prime Minister was kind enough in launching MUDRA last year which is a landmark initiative of any Government taken for the first time post Independence in the Country. Relaxation in Presumptive Tax is yet another step of the Government to ensure ease of doing business in the Country. We appreciate such initiatives and sincerely wish to extend our cooperation to the Government in augmenting revenue.
We also share your concern in eradication of black money and in line of the same the CAIT and MasterCard have jointly launched a national campaign to incentivise more and more usage of Debit/Credit Card and net banking in the Country for promoting "less cash economy" in India. The notification issued by the Government on 29th Feburary, 2016 for guidelines on promoting Digital payment is a welcome step.
However, levy of 1% excise duty on manufacturing of gold and diamond jewellery will have its adverse impact on jewellery trade and will severely affect employment of large number of artisans involved in manufacturing process of jewellery. Skilled, Semi-Skilled and unskilled labor is deeply involved in manufacturing of jewellery and by virtue of levy of excise, they will be under obligation to comply with Service Tax, VAT, Shop & Establishment Act and several other laws and rules which they may not be able to comply with. The taxation system will become more complex and will prove much against the policy of the Government for simplifying and rationalising the tax system. Several other issues will be cropped up which needs to be addressed.
It was also imperative upon the officials to study social, financial and employment aspect of the levy of 1% excise. We presume that the said exercise was not done before levy of excise.
In this context, we request you to please constitute a "Special Task Force" of Senior Officials and representative of trade to study other options of augmentation of revenue and simplifying tax procedure to bring relief to traders. Meanwhile, we shall request you to keep in abeyance the levy of 1% excise on manufacturing of gold and jewellery till the time the Task Force submit its report to you. Such a gesture will end the stalmate and will help in building a congenial atmosphere between the trade & the Government.
However, a delegation of the senior trade leaders wish to call upon your good self to discuss the issue in detal. We shall be grateful if an immediate appointment is accorded to us.
We trust that it will receive your kind attention.
Hon'ble Minister for Finance
Government of India
New Delhi
Respected Shri Jaitley Ji,
Subject : All India Jewellers Strike
We crave leave to invite your kind and immediate attention to ongoing strike by jewellery fraternity of the Country in protest against budget levy of 1% Excise duty on manufacturing of gold and diamonds.
As your goodself rightly said in the budget speech that retail trade is largest employment provider in service sector and as such due priority needs to be given to this sector to augment its potential to its optimum level. It is gratifying to note that ensuring financial inclusion of the small businesses, the Hon'ble Prime Minister was kind enough in launching MUDRA last year which is a landmark initiative of any Government taken for the first time post Independence in the Country. Relaxation in Presumptive Tax is yet another step of the Government to ensure ease of doing business in the Country. We appreciate such initiatives and sincerely wish to extend our cooperation to the Government in augmenting revenue.
We also share your concern in eradication of black money and in line of the same the CAIT and MasterCard have jointly launched a national campaign to incentivise more and more usage of Debit/Credit Card and net banking in the Country for promoting "less cash economy" in India. The notification issued by the Government on 29th Feburary, 2016 for guidelines on promoting Digital payment is a welcome step.
However, levy of 1% excise duty on manufacturing of gold and diamond jewellery will have its adverse impact on jewellery trade and will severely affect employment of large number of artisans involved in manufacturing process of jewellery. Skilled, Semi-Skilled and unskilled labor is deeply involved in manufacturing of jewellery and by virtue of levy of excise, they will be under obligation to comply with Service Tax, VAT, Shop & Establishment Act and several other laws and rules which they may not be able to comply with. The taxation system will become more complex and will prove much against the policy of the Government for simplifying and rationalising the tax system. Several other issues will be cropped up which needs to be addressed.
It was also imperative upon the officials to study social, financial and employment aspect of the levy of 1% excise. We presume that the said exercise was not done before levy of excise.
In this context, we request you to please constitute a "Special Task Force" of Senior Officials and representative of trade to study other options of augmentation of revenue and simplifying tax procedure to bring relief to traders. Meanwhile, we shall request you to keep in abeyance the levy of 1% excise on manufacturing of gold and jewellery till the time the Task Force submit its report to you. Such a gesture will end the stalmate and will help in building a congenial atmosphere between the trade & the Government.
However, a delegation of the senior trade leaders wish to call upon your good self to discuss the issue in detal. We shall be grateful if an immediate appointment is accorded to us.
We trust that it will receive your kind attention.
Thanking you. With respectful regards
Yours truly
Praveen Khandelwal
National Secretary General
Contact Cell : +91-9891015165
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