Mumbai, March 20

Jewellers called off a 19-day strike late on Saturday after government assured they will not be ‘harassed’ by the excise department in collecting a new tax, the head of a trade body told Reuters.

Jewellers from the world’s second-biggest gold consumer went on an indefinite strike from the start of March after government reintroduced a one per cent excise duty on gold jewellery after four years. “We have called off strike. From tomorrow jewellers will open shops,” said Mohit Kamboj, president of India Bullion and Jewellers Association (IBJA). “The excise duty will remain there, but the government has assured us officials from excise department will not harass jewellers,” he said.

Successive governments have struggled to curb appetite for gold in Asia’s third-largest economy, despite the imposition of a 10 per cent import duty in 2013 and other restrictions.

Annual imports of up to 1,000 tonnes of gold, accounting for about a quarter of India’s trade deficit, have also prompted the government to launch a scheme to mobilise a pool of more than 20,000 tonnes of the metal in homes and temples. Government decided to form a committee to address jewellers’ concerns, related to implementation of excise duty, Kamboj said, adding committee will submit its report in 60 days.