New Delhi: High-end consumer durables such as plasma TVs, washing machines and refrigerators are set to become cheaper by up to Rs3,600 as manufacturers look to pass on the benefit of 4% cut in Cenvat.
“Consumer durables maker will certainly pass on the excise tax benefits to the customer and I foresee around 3-5% reduction in prices across the segment,” Consumer Electronic Appliances Manufacturers Association Secretary General Suresh Khanna told PTI.
Expressing similar sentiments, LG Electronics India Head Amitabh Tiwari said: “Our high-end products such as LCD and plasma TVs, refrigerator and washing machines will see a reduction in prices by around 1.6%.”
He, however, said there won’t be any effect on mass products such as 14 inches colour TV.
LG sells 32 inches plasma TV around Rs75,000, which would now be cheaper by Rs1,200. Its high-end platinum door refrigerator is at Rs2.25 lakh and will see a reduction of Rs3,600, similarly steam technology enable washing machine priced at Rs72,990 will be cheaper by Rs1,100.
Other whitegoods major Samsung, which is still in the process of finalising possible price cuts said, the government’s move will at least halt the increase in prices the sector has witnessed off-late.
“It will bring the much needed relief to the sector which is being affected by high inflation and depreciation in rupee and will definitely stall the upward movement of prices in the sector,” Samsung Deputy Managing Director R Zutshi said.
The government yesterday slashed Cenvat by 4% across the board to boost demand as part of package to stimulate the economy, hit hard by the global financial crisis.