Winning Bizness Desk
Mumbai. Although there has been some relief in the retail inflation rate, the common man is still suffering from inflation. On the one hand, the prices of milk and its products, which are vital ingredients, are increasing and, on the other hand, inflation is now going to hit your personal hygiene too. You will now have to pay more for bathing and laundry. The rates of soap, shampoo and detergent powder are likely to increase in the coming days. According to reports, govt proposes to increase taxes on major raw materials used in products such as soap, shampoo and detergents. About two months ago, the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, recommended an increase in taxes on saturated fatty alcohols from Indonesia, Malaysia and Thailand. It is proposed to increase the rate of anti-dumping duty on these materials and impose an additional countervailing duty.
Tariff on saturated fatty alcohol to go up
If the government accepts the proposal of the Directorate General of Trade Remedies (DGTR), the import of saturated fatty alcohol will become expensive in the coming period. Purchases of saturated fatty alcohol from Indonesia, Malaysia and Thailand will be subject to higher tariffs. Indonesia, Malaysia and Thailand are the major sources of saturated fatty alcohol. On the other hand, saturated fatty alcohols are widely used to make soaps, shampoos and detergents. If these raw materials become expensive, it is natural that the burden of the increased cost will fall on the consumers as well as the companies.
Association her expressed concerns
The soap, shampoo and detergent industry is worth $2.5 billion. Thousands of people have got direct employment in this industry. Any negative impact on the industry could also affect the employment of thousands of these people. According to a report, the Indian Surfactant Group (ISG) has written to the Finance Ministry opposing the proposal to increase duty on saturated fatty alcohol. He has requested not to implement these recommendations. They also fear that the implementation of these recommendations will affect the income of the producers. Entrepreneurs also said that if the income is affected, it will be difficult to run the industry. ISG said that until now companies manufacturing soaps, shampoos and detergents have been bearing the brunt of the cost of production. In such a situation, if the price of raw material increases, the cost will increase further. As a result, there will be a huge increase in the price of soap, shampoo, detergent.
