India stands unfazed by the ire of the jewellers over the 1 per cent excise duty slapped on them. Arun Jaitley, Finance Minister, informed the parliament on Thursday that the government is not ready for a roll back of the proposed levy.
“It is no longer possible to keep a luxury item like gold outside the ambit of tax indefinitely,” Jaitley informed the parliament prompting a walk-out by the members of the opposition. Jaitley made it clear that imposition of 1 per cent tax is the first step towards the much anticipated goods and services tax (GST).
The Finance Minister said even the makers of common consumption items pay excise duty and gold jewellery cannot be exempted. Jaitley said makers of pencils, pens, ink and soap pay excise duties. Even the imitation jewellery makers have to pay 6 per cent duty.