CBEC asks to lower consumer goods prices immediately | Fusion - WeRIndia

CBEC asks to lower consumer goods prices immediately

CBEC asks to lower consumer goods prices immediately

The Goods and Services Tax (or GST) rate has recently been slashed from 28% to 18% on the prices of shampoos, detergents, deodorants, and other products.

Thus, the Central Board of Excise and Customs (or CBEC) has asked that all consumer goods companies lower their prices on these items immediately. Some consumer goods companies have already lowered their prices on these products, but other companies still have yet to do so.

Thus, the chairman of the CBEC, Vanaja N. Sarna, has written to all major fast-moving consumer goods companies (or FMCG companies). In his message, he pointed out how these companies need to revise the maximum retail price immediately.

Additionally, the Ministry of Finance has recently tweeted a statement from its official handle regarding this issue. In this statement, the Finance Ministry says that the Center expects the industry to immediately respond to the earlier appeal that was made by Arun Jaitley, the Minister of Finance, on this issue.

The tweet also stated that the government is appealing to the industry to pass on the benefit of this GST rate reduction to the consumers, which has not yet been done by all companies. However, with these messages going out to them, the other companies will likely pass on the gain soon.

This reduction of the GST rate was first recommended on November 10th, when the GST council recommended the reduction of the GST rate from 28% to 18% on 176 items, and recommending a larger reduction on two items.

Thus, this would only leave 50 items in the highest bracket. Eventually, on November 14th, the prices of over 200 items were reduced. The government is expecting the consumer goods industry to reduce these prices from 8% to 9% within four to five days, in order to ensure that the gains are shared.

Additionally, to enforce this price change, the Cabinet has approved of the establishment of the anti-profiteering agency, which will deal with errant companies refusing to pass on the benefits of lower tax rates.

Image credit: Image by gingerbreadca from Pixabay  (Free for commercial use)

Image Reference: https://pixabay.com/it/photos/cibo-navata-archivio-chip-2179178/

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