Tax cuts - corporates must reduce prices
The attached tells u how much they can. All fmcgs can reduce price between 0.5% -3%
Remains to be seen if they profiteer or pass on. more
Look at the timing. Friday morning, FM announces concessions to India Inc. and by Saturday noon election commission announces elections in two states. That means the announcement was made just before the moral code of conduct came into existence. Or election commission waited till this announcement was made.
Next obvious question is, who is going to fund election campaign? If India Inc., naturally they will pass on benefits either to electoral funding or consumer. Choice is obvious and therefore, we know the end results.
1.46 Lakh crores worth of concessions saw capital gain in share market worth 7.5 Lakh crores just in the trade if a single day. Will that income of 7.5 lakh crores be taxed or used for electoral funding? more
Most likely the tax cut will not result in decrease in the price.Even it comes, it will come after three months, as the products with printed price, will take three months to get exhausted from the market. more
Deaar Sudesh: I think you are living in a " Fool's World "..!!.. FMCG companies or for that matter any industrial organisation in India will never pass on the residual benefits of a Govt. bonanza, to the end consumer. Have they done so whenever such windfall had taken place, earlier ..??.. The clear answer would be " NO "..!!.. AT best, FMCG companies would choose to mark their packets with a " 10% Extra " or a " 20% Extra " in their selling packs and WITHDRAW THE SAME FROM THE SHELVES, ONCE THE DIN DIES DOWN ..!!.. Even Hotels and Restaurants have never passed on the benefits of Govt.'s midterm benefits to the end consumer. IN INDIA, THE AVERAGE CITIZEN ( the end Consumer ) IS THE BIGGEST FALL GUY..!!.. more
If the price of goods are not competitive, then use it for reducing the price, else use it for capex to develop the business further! Prices are always related to demand and supply. more
What are you talking about? Don't we remember that, when GST on hotel food was reduced, hotel industry had increased prices by 10%. And, had previous reductions in GST, never saw any price reductions in consumer products. This will also not be an exception. It is just a gift to INC by Indian Government from taxpayers money. more