Punjab Chief Minister Parkash Singh Badal today urged the Union Finance Minister Mr. Pranab Mukherjee seeking his direct intervention to resolve the demands of the Gem and Jewellery sector across the state forthwith. .
In a letter to Mr. Mukherjee, the Chief Minister pointed out that the stringent proposals incorporated in the Union Budget for 2012-13 had adversely impacted the gem and jewellery traders who were on the strike in the state for past one week. He said that the proposals of the Union budget regarding imposition of Central Excise Duty on jewellery, tax collection on all cash transactions of Rs.2 lakh and above in addition to these increase in rate of Custom duty on gold imports from 1% to 4% had further accentuated the woes of jewelers manifold in the state. Consequently, these harsh proposals would now require jewellers to maintain an elaborate and cumbersome book keeping, which would put extra financial burden on them. The Chief Minister further mentioned that these proposals of the Union government would not only increase the hardships of family owned small businessmen but also enhance the transaction cost of their business thereby badly hitting the common man.
Mr. Badal further said that there were about 5000-8000 jewellery shops in the state which catered to the need of livelihood of a large number goldsmiths and small workers. He lamented that if the proposals of the Union government were implemented then it would not only put huge economic burden on them but would also result into the loss of employment among the goldsmiths.