This year’s budget brought happiness for some and disappointed some on the other hand. With its main focus on agriculture and strengthening the common man, some issues were over considered in the Union Budget 2016, which result in disappointments and hopelessness by the related sectors.
That one percent increase in excise duty on gold and diamond jewellery stirred calm ocean of industry experts. Sandeep Chhabra and Sanjay Chhabra, owners of Motisons Jewellers Limited, expressed their concerned on the matter as they highlighted that one percent increase in excise duty has not only shattered the hopes of cut in import duty from ten percent to two percent but might also create more trouble for the jewellery industry.
India Bullion and Jewellers Association Limited is not optimistic either when it comes to job loss in the sector. Similarly, Bachhraj Bamalwa, the Director of All India Gems & Jewellery Trade Federation mentioned that the Modi government has disappointed the whole industry in Union Budget 2016. The cost of jewellery is believed to shoot up and might become way much difficult for the government to carry on with the excise duty. As a well-known fact, jewellery in India are mostly handcrafted and not machine made, so in order to implement the excise duty, the government will face a lot of problems.
Even its Vice Chairman, Saurabh Gadgil doesn’t have that much of positive review about this unexpected increase in excise duty. He thinks that the one percent increase in excise duty will lead to excise raj in the country and it may also cause harassment to the trade. He also mentioned that this year’s budget aims at high bracket taxpayers in general and that can be a reason behind this imposed excise duty.
Getting mixed reactions from the world on introducing something new, is quite expected across the globe, and so does India. This year, Union Budget became the hot topic to receive quite a number of reactions from the common man and industrialists, where many found it suitable and many considered it disproportioned as per their expectations.