1. Companies may pass benefits of GST rate onto consumers, says Marico chief Harsh Mariwala

Companies may pass benefits of GST rate onto consumers, says Marico chief Harsh Mariwala

Marico Ltd's patriarch Harsh Mariwala on Wednesday said that a lot is dependent on GST roll out, and a clarity is needed on the GST rate to know about the benefits for the sector.

By: | Updated: August 3, 2016 2:38 PM
Harsh Mariwala said, "Weighted average tax on edible oils is currently at 6-10%. GST will help reduce logistics costs." Harsh Mariwala said, “Weighted average tax on edible oils is currently at 6-10%. GST will help reduce logistics costs.”

Marico Ltd’s patriarch Harsh Mariwala on Wednesday said that a lot is dependent on GST roll out, and a clarity is needed on the GST rate to know about the benefits for the sector. “Expect Merit List To Be 8-10% and Revenue Neutral Rate At 20-22%, ” said Mariwala. He added, “Weighted average tax on edible oils is currently at 6-10%. GST will help reduce logistics costs.” Based in Mumbai, Marico is a consumer goods company which provides consumer health and beauty products and services. On August 05, a Board of Directors meeting is scheduled,to announce results of the first quarter which ended on June 30.

“If the rates are higher, companies may pass on the added expenses to customers, which could lead to a rise in inflation in the economy,” he said in an interview to CNBC TV18. He added, “However if rates are lower, benefits too will be passed onto consumers.” Goods and Service Tax Bill is one of the most crucial Bill of the NDA government, and experts see it as one of the biggest reforms after the 1991 economic reforms. The Bill is to be tabled in Rajya Sabha today. After many political oppositions and negotiations, the government amendments and the Bill finally looks to get passed. There has been an emerging consensus amongst the political parties in this Monsoon session.

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