Finance Minister Pranab Mukherjee today rolled back the 1 per cent excise duty levied on all precious metal jewellery both branded and unbranded bringing relief to millions of jewellers across the country.
The government has decided to withdraw the levy on all precious metal jewellery,branded or unbranded,with effect from 17th March,2012, Mukherjee said while moving the Finance Bill for discussion in the Lok Sabha. In the Finance Bill,the government had proposed imposition of Central excise duty on unbranded precious metal jewellery at the rate of 1 per cent. It was levied with the intention of rationalisation and movement towards GST.
However,the proposal drew strong criticism from jewellers,who went on strike for more than three weeks.
The minister also raised the threshold limit for tax collection at source in bullion and jewellery trade from the proposed Rs 2 lakh to Rs 5 lakh.