Luxury item cannot remain out of tax ambit: Arun Jaitley, Finance Minister of India

The excise duty of 1 per cent levied on non-silver jewellery goods has created hue and cry among the gold jewellers in the country. Refusing to relent on excise duty levy on non-silver jewellery goods, Finance Minister Arun Jaitley on April 10 said PTI a “luxury item” cannot remain out of tax ambit when taxes need to be paid on many essentials. A large section of jewellers and bullion traders have been on strike for over a month seeking withdrawal of one per cent excise duty on non-silver jewellery items. They are also opposing mandatory quoting of PAN by customers for transactions of `2 lakh and above. Jaitley told, “How can a luxury item remain out of tax when essential items like cement, cloth and many others have to pay manufacturing tax. If we do not bring GST on gold, taxation on other items will have to be increased. There is no reason why luxury items should be exempted when the country is moving towards GST. The Centre has given a benefit that excise would be similar to VAT on gold and has tried to allay fears that ‘karigars’ would be affected from the new taxation.”