Gold and Platinum costs escalate as the Union Budget announces hike in import duty. This has irked the jewelers and the associations in twin cities have called for a bandh.

The Union Budget on Friday has proposed the duty on gold imports to be doubled to 4 per cent and excise duty on refined gold to be hiked from 1.5 per cent to 3 per cent. This might result in a price hike of about 6-7 percent, predict market sources on finished jewels.  Already the yellow metal as per the bullion has been ever on the rise due to the international crisis. This hiking by the government will ruin their sales, say jewelers in the twin cities. Hence most jewel shops in Hyderabad and Secunderabad are closed for the day.

Reports say that nearly 1500 shops are closed for the day. The associations of these traders immediately urged the government to roll back the hike. They also said that due to the sudden hike the trade would be affected much.

Earlier, justifying his hike the Union Finance Minister, Pranab Mukherjee said, “One of the primary drivers of the current account deficit has been the growth of almost 50 per cent in imports of gold and other precious metals in the first three quarters of this year.”  (With inputs from internet- AarKay)