The jewellery sector has foregone business worth Rs 20,000 crore due to the strike in protest against Budget proposals. The strike has also brought gold imports to a standstill, according to an industry official.
“The Union Government has lost a revenue of Rs 700 crore in the last 20 days due to the strike,” claimed Mr Bachhraj Bamalwa, Chairman, All India Gems and Jewellery Trade Federation (GJF).
“The loss includes four per cent customs duty, one per cent VAT and other additional levies,” he said.
The GJF will lead a team of 10-15 members from different associations to meet the Union Finance Minister, Mr Pranab Mukherjee, on Friday to find a solution.
The Gem and Jewellery Export Promotion Council will stop exports if an amicable solution is not reached on Friday, said Mr Bamalwa.
Depending on the outcome of the meeting with Mr Mukherjee, the GJF will hold a rally on April 7 in Mumbai and at Ram Lila Maidan in New Delhi on April 11.
The industry is protesting against the levy of 0.30 per cent excise duty, doubling of import duty on gold to four per cent and collection of tax at source on sale above Rs 2 lakh.
Almost all political parties have supported the jewellers demand and they hope that the excise duty will be rolled back, said Mr Ashok Minawala, former Chairman, GJF.
With the wedding season and Akshaya Tritya (April 24) round the corner, jewellers expect the Government to find a solution soon, he said.
Last month, GJF made a representation to the Finance Minister explaining the difficulties in complying with excise duty norms. Mr Mukherjee asked the jewellers to call off their strike, saying their demand was being considered by the Central Board of Excise and Customs.
The industry is not willing to accept any relief other than rolling back excise, said Mr Bamalwa.