Excise to be charged on lower MRP

NEW DELHI: India Inc. can breathe easy now while offering ''slashed prices'' on retail packs of consumer goods to stir up the dormant market.
The finance ministry has decided that the maximum retail price, on which excise could be charged, will be the lower price that is printed on consumer packs.
The lower MRP is the price at which actual transaction takes place, while a higher MRP is printed alongside in a ''scored out'' style to attract customers.
The move comes as a relief to many companies engaged in the manufactured of consumer goods.
The Central Board of Excise & Customs was flooded with pleas from consumer goods majors and trade associations, after the excise department decided in May to impose excise duty on the higher or ''scored out'' MRP which is not the actual selling price.
The issue is of significance to consumer goods manufacturers since the CBEC is increasing the number of items which would be subject to MRP-based excise levy.