Jewellers call off strike

NEW DELHI Sat Apr 7, 2012 10:49pm IST

A schoolboy walks in front of a closed jewellery shop during a strike against a proposed government levy in Kolkata April 3, 2012. REUTERS/Rupak De Chowdhuri

A schoolboy walks in front of a closed jewellery shop during a strike against a proposed government levy in Kolkata April 3, 2012.

Credit: Reuters/Rupak De Chowdhuri

Related Topics

Stocks

   

NEW DELHI (Reuters) - Jewellers in India called off their three-week-old strike on Saturday, an industry official said, on assurances from Finance Minister Pranab Mukherjee that the government would consider scrapping a budget proposal to levy an excise duty on unbranded jewellery.

"The strike has been called off today onwards. We will be starting our shops from tomorrow," said Kumar Jain, vice chairman of the Mumbai Jewellers Association.

The wedding season is at its peak in India, with Akshaya Tritiya, one of the biggest gold buying festivals later in the month, making the period crucial for jewellers.

Jain said the strike would resume on May 11 if the tax rollback does not materialise.

The strike was staged to protest against an excise levy on unbranded jewellery of 0.3 percent, and a tax collected at source on transactions worth more than 200,000 rupees. The annual budget also doubled import duty on gold to 4 percent.

The moves were game-changers for the $200 billion a year jewellery industry and experts had predicted they could cut gold imports by a third to 655 tonnes in 2012, allowing China to overtake India as the biggest gold importer.

The strike by jewellers resulted in a loss of 200 billion rupees, according to industry officials.

(Reporting by Anurag Kotoky and Siddesh Mayenkar; Editing by Nick Macfie)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage