Jewellery traders oppose sales tax

Jheveri said that for the last seven years, imitation jewellery was exempted from sales tax in the state. The industry provides employment to around four lakh workers due to the recent imposition of sales tax on imitation jewellery selling above Rs 50 these manufacturing units are likely to close down and around 50,000 artisans would lose their daily bread.

The production of imitation jewellery selling above Rs 50 in the state is in the range of Rs ten to 12 crore per annum. Four per cent sales tax on it can generate revenue of Rs 40 to 50 lakh for the state government. Interestingly, the expenditure incurred on collection of this amount will be equivalent to this amount.

The regressive step of the state government will also displace the imitation jewellery industry in the state and lead to massive unemployment and reduction in sales tax revenue to Maharashtra government, Jheveri added.