Excise duty hike on non-branded jewellery to be borne by manufacturers: CBEC
BT Online Bureau March 19, 2012The Central Board of Excise and Taxes (CBEC) on Monday said there is no reason for goldsmiths and artisans to have any apprehensions about the government's proposed 1 per cent excise duty on non-branded gold jewellery, as the hike will have to be paid by manufacturers.
"As far as excise duty on non-branded gold jewellery is concern, we have...liberalised way of implementing it. Goldsmith and artisan won't have to pay duty," CBEC Chairman S K Goel told reporters on the sidelines at an event organised by Assocham.
Goel further added that duty will have to be paid by the manufacturers of jewellery, and accounts will also be maintained by them.
Finance Minister Pranab Mukherjee in his Budget proposals for 2012-13 has doubled the basic customs duty on standard gold bars to 4 per cent and non-standard gold to 10 per cent.
He has also imposed one per cent excise duty on unbranded jewellery.
Protesting against the increase in excise duty and the doubling of customs duty on precious metals, bullion traders in several parts of the country are on strike on Monday.
Mukherjee, on Sunday, had bluntly told bullion dealers that their pressure tactics 'will simply not work'.
- with PTI inputs