BANGALORE: The Karnataka Jewellers Association called for a ‘Raj Bhavan Chalo’ protest against the Central budget 2012.
They protested against the levy of excise duty, customs duty and consumer tax in their field.
About 400 people participated in the protest and submitted their memorandum to the Karnataka Governor H R Bhardwaj on Tuesday.
The gold dealers are not in favour of the new tax system given by the Union Finance Minister as they feel that it would take away the shine from jewellery.
“We oppose the hike in customs duty from 2 per cent to 4 per cent, and 1 per cent in excise duty on precious jewellery, branded jewellery and the new consumer tax levied on the retailer, especially, on the sale of gold above `2 lakh,” said T A Sharavan, president, Karnataka Jewellers Association.
They opined that imposing excise duty on gold would only restrict business of small bullion traders and jewellers.
Also, they felt that the proposed increase in import duty will lead to unchecked smuggling of the metal and hence, the increase in import duty should be withdrawn.
The increase in excise duty would mean a six per cent rise in price of jewellery and that would be a huge burden on common man.
Jewellery trade is already suffering due to high price rises and this rise could even lead to job loss for goldsmiths, designers and local artisans, they said.
The Association said that they would continue to protest until action is taken