Coal Mionister Jaiswal opposes govt on jewellery duty hike

 In what could be a big embarrassment to the UPA government, senior Congress leader and Coal Minister Sriprakash Jaiswal has slammed that the excise duty hike announced by Finance Minister Pranab Mukherjee on jewellery in this year’s Union Budget.

Reports, Monday, claimed that Jaiswal made these remarks while attending a meeting in Kanpur where he expressed solidarity with the jewelers opposing the excise duty hike.

Reacting to the move, the Coal Minister even compared some government departments to mosquitoes that suck their blood.

"For only Rs 100 crore of revenue I realise how much you will have to go through. Like mosquitoes in the night, in our country there are some departments that also suck blood," he was quoted as saying.

Bullion and jewellery markets have strongly opposed the imposition of excise duty on unbranded jewellery and doubling of import duty on gold. Many jewellery shops have remained closed in various cities in protest.

Importantly, the All India Sarafa Association has also approached the Congress president and UPA chairperson Sonia Gandhi seeking her intervention in the matter.

Traders are protesting against the budget proposal imposing excise duty of 1% on unbranded precious jewellery and doubling of customs duty on standard gold bars and coins to 4%.

In a week after the Union Budget was tabled, sources claimed that the bullion and jewellery industry incurred a loss of over Rs 10,000 crore, including Rs 750 crore on the auspicious day of 'Gudi Padwa" in Mumbai alone.

Retail jewellers brought under the excise net by the recent budget proposal were more worried and requested shifting of duty to another form.

Traders have warned that imposition of higher levies may lead to a rise in retail gold prices by over 6% in the country, which is seeking to rein in a widening current account-deficit partly fuelled by record purchases in 2011.

All India Bullion and Jewellers' Association said the proposed excise duty on jewellery would affect the business and needs elaborate book-keeping which could be a cumbersome process for jewellers.

‘Congress win or Prez Rule, no other option in UP’

Even before the Congress could steer away from the storm created by the statements by its leaders on the issue of Muslim quota, another senior party leader has created a fresh controversy.

Union Coal Minister and Member of Parliament from Kanpur, Sriprakash Jaiswal said on Today that if the Congress fails to secure a majority then the only other option appears to be the imposition of President’s Rule in the state.

“"Those who lack confidence are looking for alliance ....Congress will not forge any alliance,” Jaiswal told reporters.

"If Congress gets majority then it will form the government...if some seats are short then there is no option other than President's rule," he said.

Jaiswal said that results of UP polls would be "shocking" and Congress would get majority.

The fifth phase of voting for the Assembly elections in the state is currently underway; counting of votes is scheduled to be held on March 6.

The opposition has latched on to his comments. Both the Samajwadi Party and the Bhartiya Janata Party have decided to take the matter to the Election Commission, while the Bahujan Samaj Party termed the Jaiswal’s comment as sign of Congress’ desperation.

“Congress is restless that is why they are making statements like this. On the threat that they would impose President's rule, I appeal to the electorate not to poll in favour of Congress as the party is not understanding the importance of their votes,” BJP leader Uma Bharti said.

Her party colleague Mukhtar Abbas Naqvi said that the ‘people of the state are not voting to elect a Governor’.

Samajwadi Party leader Akhilesh Yadav said that Congress will not win given their poor track record on corruption and price rise. “People are looking at Samajwadi Party, I am confident that our party will come to power,” he said.