Jewellers in the country have called for an nation-wide protest to show their opposition to the introduction of two per cent additional tax on gold in the union budget that was presented on 16 March 2012.

In Karnataka, people are getting ready to purchase gold jewelry for the upcoming festival of Ugadi in the state. However, shows here too remained closed as a response to the countrywide strike.

The members of the jewellers association have indicated that the future course of action will be decided after a meeting with all the jewellers on Monday. It is believed that the protests will be continued on Monday.

Experts say that unbranded gold ornaments will become more expensive by about Rs 1,000 per 10 grams due to the budget proposal to impose the excise duty. Jewelers say that the move will encourage buyers to seek ornaments without receipts and boost illegitimate business.

The government is planning to impose 1 per cent excise duty on non-branded gold jewellery besides doubling the import duty on gold to 4 per cent. India union Finance Minister Pranab Mukherjee has announced his decision to increase the duty on gold imports to 4 per cent in the country with effect from the next financial year.

The doubles of the duty from 2 per cent comes after previous increase in January. The move indicates that government is increasing concerned over the import of the metal that worsens its current account.

Mukherjee said that the growth of 50 per cent in import of gold and other metals has become the primary reason for the worsening of the current account position of the government during the first three quarters of this year. He pointed out that he as to take steps to work on the steps that are already taken to control the situation.

India, which is the largest consumer of the shiny metal, is estimated to import a record $58 billion worth of gold in the 2011-12 fiscal year.