NEW DELHI: There may be good news for those of you planning to buy air conditioners and refrigerators this summer as the finance minister proposed a 2% cut in excise duty for a range of consumer durable products in the interim budget. Excise duty on products ranging from vacuum cleaners to food mixers and microwaves will come down to 10% from the present 12%.
Most companies, though, said they would assess the impact of this announcement before passing on the gains to consumers in terms of price cuts. This cut comes in the backdrop of a an ailing consumer durable industry which has struggled with rising raw material costs and an appreciating rupee tapering the growth of the sector over the past few years.
Domestic durable major Godrej & Boyce said price cuts are likely to come in but not immediately. George Menezes, COO, appliances division, Godrej & Boyce said, “There is a huge inventory pile up of up to 40 days. Once this is exhausted, the benefit of the excise duty reduction will kick in for the consumer.” Read more