Indian gold jewelers led by members of the All India Gems and Jewellery Trade Federation (AIGFTF) staged a protest action over the weekend to complain the 2 per cent increase on basic customs duty onstandard gold bars, gold coins and platinum that is proposed by the Indian government.

Thousands of state jewelers, including 3,000 from Ahmedabad and 15,000 from Ranchi, simultaneously closed their respective shops as they demanded on federal government to scrape the impending tax hike plan.

Indian jewellery traders said their businesses have been seriously affected by the rising cost alone of gold in the global market. Implementing the proposed tax hike would further add to their current problems as the industry would be likely compelled to increase the prices of finished products. Suffice to say, the gold consumers will receive the burden of the proposed tax rate increase.

"This is in protest against the imposition of excise duty proposed across the whole sector in the annual budget 2012. The industry has decided to represent to Finance Minister Pranab Mukherjee the displeasure of the trade of the imposition of what they say was the control measures that actually killed the sector between 1962 and 1992," the AIGFTF said in a statement.

The synchronized shutdown, which started on Saturday, may extend until today, Monday, the federation added.

"The proposed excise duty will not only trouble big dealers in this business but ordinary jewellers will also be subjected to great hardship," Bipin Adeshra, Jamshedpur chapter president of AIGJTF, said in The Times of India.

"We are not going to accept the hike in customs duty," Vijay Burman, president of the Sona Chandi Vyavasai Samiti, said.

"Gold is a high value product and imposition of taxes will further increase its affordability affecting the demand livelihood of thousands of workers in the sector. Government must withdraw these harsh provisions in the budget," Bhayabhai Saholiya, president of Rajkot Gold Dealers Association, said in www.dnaindia.com.