Will prices of TVs, refrigerators, washing machines come down after Budget 2018?

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Updated: January 19, 2018 10:28:13 PM

Budget 2018: Following the implementation of Goods and Services Tax (GST), consumers had to spend extra bucks to purchase items like TV, refrigerator and washing machine.

Budget 2018, TV prices budget 2018, refrigerator prices budget 2018, 2018 budget ficci, ficci budget 2018, ficci memorandum on budgetBudget 2018: TV, refrigerator and washing machine were put in the bracket of 28% which is the top slot under the GST regime.

Budget 2018: Following the implementation of Goods and Services Tax (GST), consumers had to spend extra bucks to purchase items like TV, refrigerator and washing machine. These items were put in the bracket of 28% which is the top slot under the GST regime. Now, FICCI has recommended that GST council should slash GST rates on these items and other durables. It has suggested that the central government should address the issue in the upcoming Union Budget 2018. FICCI has cited that consumer durables are essentials and cannot be considered as luxury, especially items such refrigerators and washing machines in today’s era. The industry has also suggested that the rate of GST on consumer durables should be reviewed and reduced by the Government at the earliest. If the recommendation is taken into consideration, the prices of these goods will come down by a substantial margin.

FICCI has also recommended the government to reduce GST on domestic appliances in budget 2018. It said: “Electromechanical domestic appliances like Mixer Grinder falls under chapter heading 8509. The relevant entry reads as follows “Electro-mechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 8508 [other than wet grinder consisting of stone as a grinder]”.

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FICCI pointed out that Mixer Grinder is a product commonly used in almost every household. In modern-day cooking, no food preparation can be complete without using a mixer grinder, it said. Thus, it has become an apparatus of necessity in very common man’s household.

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The industry body has also asked the government to amend custom duty rates compressors, motors, electronic components. “There are components like high-efficiency compressors and motors, Electronic components, vacuum insulation panels (required for meeting the higher BEE energy regime) which either do not have domestic manufacturers or there are severe capacity and competition constraints, accordingly the peak duty structure of 7.5% should be reduced,” FICCI has said.

FICCI has said that reduction of duty will help the energy regime to deliver better products to the customer at reasonable prices.

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