Prices of durables set to come down
Companies are still waiting for the fine print of the fiscal sop, but industry players feel that the net impact of the excise cut may be around 1-1 .5%.
By TNN |
NEW DELHI: Consumer durables may become marginally cheaper as a result of the 2% excise duty reduction announced by government on Tuesday. Companies are still waiting for the fine print of the fiscal sop, but industry players feel that the net impact of the excise cut may be around 1-1 .5%.
Samsung India deputy MD R Zutshi said, "The excise duty cut from 10% to 8% should serve to provide a trigger for growth. The duty cuts carried out in December 2008 and the subsequent price cuts effected had served to fuel growth in the sector. I expect the industry to pass on the benefits of this excise duty cut too, which should boost consumer demand."
In December, the government had reduced excise duty by 4%, which companies had passed on to consumers. The benefit has been extended beyond March 31. For instance, last year in December, Samsung had reduced prices in the range of Rs 500 to Rs 10,000 on LCD TVs, and Rs 1000 to Rs 6000 on plasma TVs.
LG Electronics India director (sales and marketing) V Ramachandran said the net impact on companies will be around 1.5%, but we need to assess the notification before deciding on price cuts. Some companies may not be impacted because they are manufacturing in excise free zones.
Samsung India deputy MD R Zutshi said, "The excise duty cut from 10% to 8% should serve to provide a trigger for growth. The duty cuts carried out in December 2008 and the subsequent price cuts effected had served to fuel growth in the sector. I expect the industry to pass on the benefits of this excise duty cut too, which should boost consumer demand."
In December, the government had reduced excise duty by 4%, which companies had passed on to consumers. The benefit has been extended beyond March 31. For instance, last year in December, Samsung had reduced prices in the range of Rs 500 to Rs 10,000 on LCD TVs, and Rs 1000 to Rs 6000 on plasma TVs.
LG Electronics India director (sales and marketing) V Ramachandran said the net impact on companies will be around 1.5%, but we need to assess the notification before deciding on price cuts. Some companies may not be impacted because they are manufacturing in excise free zones.
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