Although hailed by many, including social media celebrities, the decision to remove the Goods And Services Tax (GST) on sanitary pads has led to discontent among local manufacturers, Business Standard has reported.
Feminine and Infant Hygiene Association (FIHA), which represents leading sanitary pad manufacturers like Johnson & Johnson, Proctor & Gamble and Kimberly Clark has claimed that the move will not yield desired results.
“The exemption of sanitary pads from GST effectively denies input tax credit to companies manufacturing in India. As a result, in order to offset the loss, companies will not be able to pass any significant benefit to consumers,” the FIHA has claimed.
Kamal Johri, Managing Director of Nobel Hygiene told Business Standard that loss of input tax credit after GST exemption on sanitary pads will make manufacturing unviable for local manufacturers and benefit imports.
Television manufacturers have also expressed discontent over GST benefits for small TV segment (up to screen size of 68 cm) as the 26 inch TV sales constitutes only 8-10 percent of sales. Rohit Kumar Singh, spokesperson, Consumer Electronics and Appliances Manufacturers Association (CEAMA) told Business Standard that most middle class customers buy in the 32-43 inch bracket and therefore, the GST rate cut should have included screen size up to 142 cm (or 42 inches).