Following government’s move to slash excise rates by two per cent, consumer goods companies will see prices of items of daily consumption coming down, says industry experts.
The further reductions in excise and service tax by 2 per cent and extension of the earlier 4 per cent cut in excise duty beyond 31st March 2009 will go a long way in stimulating consumption demand” said Chandrajit Banerjee, director general, CII.
Meanwhile, the reduction in excise duty on bulk cement to 8 per cent will also help reduce costs of real estate and infrastructure development.
On the same lines, Harsh Pati Singhania, president, FICCI said that these moves are indeed welcome as the Indian economy is going through a rough patch and requires support.
“While extension of the earlier announced excise rate cut beyond 31st March, 2009 would result in greater demand generation through 2009, the cut in service tax rate would help bring down costs to the beneficiaries of the services,” he added.
In a statement, ASSOCHAM complimented the finance minister Pranab Mukherjee for announcing continuation of across the board 4 per cent excise duty cuts beyond March 31, 2009 and described 2 per cent slash in service tax a move that will provide great relief to industry and aam adami.
— IndiaRetailing Bureau