Jewellers in the country have decided to extend their nation-wide stir over the issue of changed taxation rules by the government proposed in the budget tabled on 16 March in the parliament by the finance minister.

The Jewellers are angered over the hike in import duty on gold and inclusion of unbranded gold ornaments for excise tax. The All India Sarafa Association and the All-India Gems and Jewellery Trade Federation announced that the strike would continue for two more days around the country including major cities like Delhi and Mumbai.

Jewellers have been protesting the decision since 17 March against the Budget 2012-13 proposals and the strike was to end yesterday. Mr Sheel Chand Jain, the President of All-India Sarafa Association said the jewelers have decided to extend the strike for two more days while keeping in mind the interest of the industry and small jewellers in the country.

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 doubling 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.