Pranab Mukherjee firm on import duty on gold

NEW DELHI: Finance minister Pranab Mukherjee reiterated his promise to reconsider his Budget proposal to tax unbranded jewellery, but remained firm on the import duty on gold. In his reply to the debate on Budget in the Rajya Sabha, Mukherjee said would make appropriate announcements in respect of unbranded jewellery in the second half of the budget session of Parliament.

"You will have to wait till (debate on) the Finance Bill ...we are examining... but please don't insist on reduction of import duty (on gold). Import duty reduction is not possible," he said.

The Rajya Sabha passed the first part of the Budget, completing the first phase of the budgetary process. The detailed discussion on the Budget will take place in the second half of the budget session. Finance minister also promised to reconsider the decision to make PAN declaration mandatory for purchase of gold jewellery of over 2 lakh.

He assured jewelers that there would no scrutiny if they provided provide a self-declaration that their turnover is less than Rs 5 crore. "Self declaration will be final...no scrutiny," he said.

Jewellers in several parts of the country are on strike for the twelfth day against the budget proposal to levy 1% excise on and tax collection at source on jewellery purchase is excess of Rs 2 lakh.

He ruled out any rethink on his decision to double the customs duty on gold and platinum to 4% saying the country could not afford to spend foreign exchange on such items.