25 March,2011 06:21 AM IST | | A Correspondent
More than 1,000 jewellers to stage protest march from Mahatma Gandhi statue to Vidhan Soudha against the recent proposed hike in VAT
Protesting the recent proposed hike in VAT on jewellery from 1 per cent to 2 per cent by the Karnataka government, jewellers in the city have decided to close their retail shops today. Under the auspices of the Jewellers Association Bangalore (JAB), more than 1,000 jewellers in the city would also stage a protest march from Mahatma Gandhi statue to Vidhan Soudha, the seat of power.
Not done: As the new charges willu00a0 come into force on April 1, jewellers'
associations had submitted a memorandum to the CM, some days ago
requesting a roll back of VAT. Representation pic
The jewellers' associations had submitted a memorandum to Chief Minister B S Yeddyurappa, some days ago requesting a roll back of VAT from 2 per cent to the earlier 1 per cent. "The new VAT regime comes into force on April 1. However, since the government has not offered any positive respite, the jewellers have decided to intensify their protests with the closure of all retail showrooms and also undertake a protest march," an Association release said.
JAB President Pathi Mahesh said, "Higher rate of tax will lead to lower compliance and loss of revenue to the state. It will also cause irreparable and permanent damage to the gems and jewellery sector. Besides, entrepreneurs from other states will be discouraged to set up business here."
JAB Secretary S Venkatesh Babu said, "If the government insists on 2 per cent VAT, manufacturing will move out of Karnataka and as a result, we expect more than 50 per cent of labour force to move to neighbouring states or become jobless. Thus, employment in the state will also be affected."
