Budget-2012 disappoints Consumer Goods industry
New Delhi: One of the most awaited announcements of the Union Budget is the consumer goods segment. But Union Budget-2012 has left the FMCG industry disappointed due to lack of incentives in it. Proposed hike in the excise duty has added woes for the industry.
Although Finance Minister has announced full exemption from the basic custom duty for LCD and LED TV panel but still industry giants fear that hike in excise duty from 10 to 12 per cent would lead to hike in the prices of other white goods like refrigerator, air-conditioners and washing machines.
Experts feels that hike in the excise duty is not good for Consumer Durable Industry. While speaking to The Economic Times, Mahesh Krishnan, VP-Home Appliances, Samsung India said that increase in the input cost may lead steep price rise.
Jewellery is among the worst hit sections by the Union Budget. Budget proposes doubling the import duty on gold and platinum jewellery.
In the Budget, the Finance Minister has announced an increase in basic customs duty on standard gold bars; gold coins of purity exceeding 99.5 per cent and platinum from 2 per cent to 4 per cent and on non-standard gold from 5 per cent to 10 per cent. Industry experts are of opinion that this could lead to an increase of 3-4 per cent in the prices of gold. According to The Deccan Herald said that government's move is going to make gold jewellery dearer.