FMCG major, Marico has reduced prices of its hair oil brands by about 5% to pass on the GST benefits to consumers. This comes after a number of other FMCG companies have passed on GST benefits on toilets soaps. Recently, Emami reduced prices of its Emami 7 Oils in One by 6-9% across stock keeping units (SKUs).
Vivek Karve, Chief Financial Officer, Marico, said, "Marico has taken an average price cut of about 5per cent in its hair oil brands in order to pass on the GST benefits to the consumer and has initiated manufacturing with revised prices. The stocks will hit the market soon."
A few days back, Godrej Consumer Products took a price correction in the range of 6-8% in its toilet soaps portfolio.
Post GST, the tax rate on soaps, hair oils and toothpaste has come down from the earlier levels of 24-25% to 18%. On detergents, skin care, hair care and biscuits, however, the tax rate has increased to 28% from 24-25%.