Corporate tax cut likely to help demand, make consumer goods cheaper

In the run-up to the festive season, there is some good news for consumers — prices of fast-moving consumer goods (FMCG) are likely to fall after the government cut corporation taxes on Friday.

FMCG sector experts said consumer goods will be one of the biggest beneficiaries of the tax cut. Some of these benefits are likely to be passed on to consumers in the form of lower prices.

“Consumer companies are likely to partially cut prices,” said Abneesh Roy, senior vice-president, research (institutional equities), Edelweiss.

“When the goods and services tax (GST) on consumer goods was cut, there was a