Makers of after-shave lotions and deodorants are excepted to slash prices, after the finance minister announced a cut in excise duty in the Union Budget for 2003-04 on Friday.
In the toiletries category, excise duty chargeable under the Medicinal and Toilet Preparations Act, on medicines and toilet preparations containing alcohol has been reduced from 50 per cent to a uniform rate of 16 per cent, at par with similar items not containing alcohol.
Moreover, import duty has also been reduced from 30 per cent to 25 per cent.
Therefore, prices of imported goods will also be cheaper. Companies like Gillette India, Hindustan Lever and Henkel Spic will benefit from this move.
Biscuit and confectionery makers like Britannia, Hindustan Lever, Parle Products will also benefit from the budget as a result of the proposed cut in excise duty from 16 per cent to 8 per cent.
However, it will have little impact on consumer prices of these products
