Import duty hike will not affect business: Jewellers

According to Anil Auddy, assistant secretary of the Bullion Merchant’s Association said on Thursday,"the increase in the duty is an attempt to reap a greater benefit of the policy introduced by P Chidambaram in 1997, when he allowed the import duty on gold to be paid in rupees, instead of in dollars, as was the earlier norm."

Subir Sen, of BC Sen, a reputed jeweller in Calcutta and joint secretary of the Swarna Shilpa Bachao Committee feels the market is a bit sluggish at the moment and we will not feel the impact of the hike unless the markets start moving.

"However, the increase from Rs 220 to Rs 250 in import duty per 10 grams, is toomeagre to stir the market," Sen added.Auddy feels the sluggish trend is due to the shortage of black money. “In the post-VDIS scenario, however, the equations are different,” he added.

The state finance minister Ashim Dasgupta had said during a jewellery exhibition in Calcutta that he was considering reducing the sales tax on gold jewellery from two per cent to one per cent and make it a single point tax, instead of the present multi-point structure.However, market circles said that there have been no indications from the state government’s side on whether the minister will follow up on the issue.

Pradip Ghosh, president of the Swarna Shilpa Bachao Committee, and a leader of the Indian National Congress said "since the budget session is now on we are expecting some kind of a statement from the minister."

The Calcutta market rates have gone up by more than Rs 100, in the last three weeks. The rate per 10 grams was Rs 4,245 on May 13, and it shot up to Rs 4,370, early last week.