BANGALORE: Following Union Finance Minister Pranab Mukherjeeâ€™s announcement of tax withdrawal on gold jewellery, the precious metal can become cheaper by Rs 150 per gram from Monday.
Till Monday, gold rate in Bangalore was Rs 2946 (24 K) and 2748 (22 K) per gram. According to T A Saravana, president of Karnataka Jewellers Association, there are more than 10,000 jewellers in the state and nearly 40 cent of them are in Bangalore. He said, â€śWithdrawing excise duty on gold is a victory for their struggle.â€ť
Further, Saravana said that with excise duty withdrawn, customers can save least Rs 150 less per gram. â€śThis is wedding season and there are festivals ahead. With the price being reduced, more customers tend to buy and we are expecting good business in coming days,â€ť he said.
General manager of Chemmanur Jewellers, Bangalore, Wilson O said, â€śNow, that Central government has withdrawn the tax, we are expecting more customers. Overall, it is good for the industry.â€ť
However, to some, it does not make any difference. A senior authority from Tanishq said that they are already paying excise duty as their turnover is more than Rs 4 crore per annum. â€śThe new excise duty is for the jewellers whose turnover Rs 4 crore and less than that per annum. We do not fall under this category. It will make no difference.â€ť