No rollback of 1% excise duty on jewellery: Jaitley

Tribune News Service

New Delhi, May 5

Finance Minister Arun Jaitley today refused to rollback the levy of 1% excise on non-silver jewellery by stating that the levy was not applicable on small traders and artisans.

Replying to the discussion on the Finance Bill 2016 in the Lok Sabha, Jaitley rejected the demand for a rollback of 1% excise duty which has been a contentious proposal in the Union Budget leading to a long strike by the jewellers. After the Finance Minister’s reply, the Lok Sabha passed the Finance Bill which will now go to the Rajya Sabha.

During the reply, Jaitley took potshots at the Congress for its hatred for “suits” but love for gold. BJP ally, Shiv Sena and the opposition Congress raised demands for doing away with the levy.

“I am unable to understand this politics, this economics where you hate suits but are in love with gold,” he said adding the duty was not targeted at small traders and artisans but would be levied only on jewellers with Rs 12-crore turnover in a year.

Jaitley’s reply to the Finance Bill did not contain major proposals for changes in the Budget proposals. While spelling out several issues facing the economy, the Finance Minister warned of action against those passing off income from other sources as agriculture income but ruled out levying any tax on farm earnings.

The minister said the government will take action against those found holding illegal offshore accounts as revealed in the Panama Papers leak for which notices have already been issued. On black money, he said government efforts have brought to the books Rs 71,000 crore of undisclosed assets.

While some members raised the issue of other income being passed off as agricultural income, Jaitley said there are some cases where people are passing off income from other sources as agriculture income.

“That is a case of evasion. That will be dealt with under the law. That the assessing officer can deal with,” he said.

Jaitley said there was no proposal to tax agriculture income. “This category of people earning from agriculture in crores is very little. In any case, please remember, under the Constitution of India, the Centre has no power. It is a State subject.”