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Consumer goods companies come up with sensational price reductions
Posted on: 05/Jul/2017 4:40:41 PM
Following the implementation of the GST, the manufacturers of consumer products have started coming up with sensational price reductions, mainly with the intention to pass the benefits availed by them through the tax concessions.
Consumer items manufacturers including Patanjali, ITC, Hindustan Lever, and Marico have started selling their products to the agents at reduced prices.
The CCFO of Marico explained that the company has started passing on the tax concession on products under lower GST slab to the customers. The company is making all the arrangements to make the now lower-priced products in the market.
Hindustan Lever has reduced the price of the 250 grammes RIN bar soap from Rs. 18 to Rs. 15. It has also increased the weight of the Surf Excel Bar soap, sold at Rs. 10 per bar, from 95 grammes to 05 grammes.
The PRO of Patanjali, owned by Baba Ramdev, explained that all the benefits availed through lower taxes will be directly passed on to the buyer. This may be either price reduction or weight increase for the same price.
Consequently, it is expected that most other consumer product manufacturers will come up with lower prices. The products of day-to-day usages, such as bath soaps, hair oil, detergent powder, soap, tissue paper, and napkins are under the 18% GST slab.
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