Gold traders in the city have intensified their strike to protest against the recent Union Budget proposal bringing them under the ambit of excise duty. A majority of the gold traders downed their shutters for the 12th consecutive day on Wednesday to oppose the levying of excise duty on unbranded jewellery and doubling of import duty on gold. All stores, except branded jewellery stores, in the city were closed.
The jewellery sector in the city has lost business worth nearly Rs 500 crore during the last 12 days. The city jewellery business is pegged at Rs 40 crore per day. “The fresh taxes will increase the cost of gold by about Rs 1,000 for 10 grams. A levy of one per cent tax at source for transactions over Rs 2 lakh was also proposed. This will impose a financial burden on customers,” said Shekar Gupta, a gold trader.