Ashok Lahiri Committee constituted to review excise duty imposed on different jewellery articles in Budget 2016-17

The Union Ministry of Finance on 21 March 2016 constituted a Sub-Committee under the aegis of the High Level Committee (HLC) to review issues related to excise duty.

The committee will be headed by former Chief Economic Advisor Dr Ashok Lahiri and will review excise duty imposed on different jewellery articles in Budget 2016-17.

Before finalising its report the committee will interact with trade and industry on tax laws.

Composition of the Sub-Committee

• Dr Ashok Lahiri (Chairman)

• Three representatives of the trade [to be decided by the Government];

• One legal expert [to be decided by the Government];

• Officer concerned from the Ministry of Commerce & Industry

• A high level official from the Central Excise Department

The Sub-Committee will submit its report within 60 days of its constitution.

Background

In the Union Budget 2016-17, Finance Minister Arun Jaitley proposed the Central Excise duty at the rate of 1 percent (without input tax credit) and 12.5 percent (with input tax credit) on jewellery items.

The proposed tax will be applicable on all articles of jewellery except for silver jewellery, other than those studded with diamond, ruby, emerald or sapphire.

Since then, the tax proposal has been strongly opposed by the All India Gems and Jewellery Trade Federation (GJF), India Bullion and Jewellers Association (IBBJ) and Gems Jewellery Export Promotion Council terming the measure will hurt the jewellery sector that employs millions of people.

Now get latest Current Affairs on mobile, Download # 1  Current Affairs App