FMCG industry to pass on the tax benefit, reduction in prices – increment in quantity

New Delhi, July 4 (KNN) With the roll out of the Goods and Services Tax (GST) from July 1, the tax rates on the Fast Moving Consumer Goods have been reduced and as a result companies will be extending the tax benefit to the consumers.

This is being done either by companies reducing the prices of their products or by increasing the weight of the existing packet in the same price bracket.

The fresh batches of dispatch from July 1^st are likely to observe this change.

In a press interview Vivek Karve, CFO at Marico informed that the new prices will hit the market soon. With the GST finally implemented the consumers are to save on the FMCG.

There are reports of companies already reducing prices of their products because of the GST. HUL has reportedly reduced the prices of its products such as soaps and detergents in order to facilitate the tax cut for the consumers under the GST.

In the GST regime, the daily use goods have been placed in a tax slab of 18 per cent. (KNN/ DA)