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Relenting in the face of strong demand from a large number of Members, Finance Minister Pranab Mukherjee today announced that he would consider the rollback ofone per cent excise duty on gold jewellery.Replying to the discussion on the Budget for 2012-13 in the Lok Sabha, Mukherjeesaid he had no intention of harassing small gold jewellery manufacturer, pointi

ng out that after all the small traders were paying VAT imposed by their respective states.He, however, said he was ready to consider the demand for withdrawal of this duty.When former Finance Minister Yashwant Sinha of the BJP demanded that pending theGovernments final decision in this regard, the excise duty on gold jewellery sho

uld not come into effect, Mukherjee said he would have to look into the legal aspect of allowing it.The Finance Minister said he would not withdraw the increase in custom duty on gold as the precious metal was being imported in a large amount worth 46 billiondollars a year, next only to the Bill for Petroleum import.He said the Government did not want to encourage import of dead assets beyond alimit.The Finance Minister also announced that a special package would be worked out for sericulturist to ward off the effect of reduction in import duty on raw silkgiven last year to help weavers.He also made an apeal to states to change their mind-set and think with open min

d on introduction of the Goods and Services Tax.The Finance Minister, in his over an hour-long reply sought the cooperation fromthe Opposition in implementing the Budget Proposals which he said were for boos

ting domestic demand and the only way to maintain growth in a hostile global economic environment.He said his Budget had three objectives: Coming back to high growth trajectory of 9 per cent, fiscal consolidation and moderating inflation.Mukherjee said it was a fact that the world was passing through a very difficultinternational economic phase with the development in West Asia creating uncerta

inty in oil market and the Eurozone crisis affecting financial health of major economies like Japan and the US. In obvious reference to coalition partners, he sought to stress that the Government needed to take several decisions which it could not take as it had to consider the perception of others too and take them al

ong.My objective is not to win school debates but to get things done, he said.The Finance Minister also sought to emphasise that the Budget proposals were aimed at boosting agricultural growth as without that domestic demand could not beincreased.He also pointed out that he had brought down the excise duty from the 14 to 12 per cent to boost production. For introducing GST, realignment of taxes would beneeded, he added.Mukherjee said he could take satisfaction in bringing down inflation from 21 percent in February, 2010 to 8 per cent in January, 2011.

He, however, said he would have more choice in monetary measures if the supply constraints could be met.Mukherjee accepted the need of balancing the current account, and sought to assu

re the House that his Budget did not have any hidden figures. The Finance Minister sought to point out that there was a shortfall of Rs 32,000 crore in the direct taxes because of the low profitability of the corporate sector.He said the Government fully realised the need of profligacy in expenditure.Coming to the issue of central compensation to states for proposed scrapping ofthe sales tax, he said the states had to accept certain objectives. Unless the Centre was given a timeframe for introduction of GST, how long it could on compensating the states, he said.Finally, he sought to debunk the allegations that the Centre was trying to attack the federal structure of the Constitution, referring specially to Leader of Op

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position Sushma Swarajs remarks.Mukherjee pointed out that the successive Finance Commissions had been recommending devolution of more economic resources to states and the share of states in the Central revenue had been increased to 32 per cent.The Rs 41,000 crore revenue to be collected this year would not be appropriated by me alone, he said.The House, thereafter, passed the Appropriation Bill for 2012. (UNI)

2) hindustan times

The strike by bullion traders and jewellers continued for the sixteenth day on Sunday to protest the proposed increase in import duty on gold and imposition ofexcise duty on unbranded jewellery.

Most jewellery houses in the country are closed since finance minister PranabMukherjee in his budget proposals on March 16 imposed one% excise duty on unbranded jewellery and doubled the import duty to 4% on gold.

Striking associations in different part of the country have collectively decidedto go for a complete closure of bullion markets in major as well as small towns

.

Haresh Soni, President, Gold Souk Mall Jewellers Association, said in a statemen

t on Sunday that establishments of gems and jewellery traders in Gurgaon remained closed as part of the strike.

All India Sarafa Association President Sheel Chand Jain has said the strike willgo on for an indefinite period until the government roll backs the taxes impose

d on the bullion trade.

The government had proposed a hike in import duty on gold bars, coins and platinum to 4% from 2%, after doubling the tax in January.

Traders have warned that imposition of higher levies may lead to heavy paper work for small jewellers and a rise in retail gold prices by over 6%, which is seeking to rein in a widening current account-deficit.