Retail and consumer products are likely to be dearer due to the hike in indirect taxes, industry players said on Saturday.
"Service tax is upped to 12 percent and so is the Excise that is hiked across the board. This will definitely impact overall prices and lead to moderation of demand," Shoppers Stop managing director Govind Shrikhande said.
Expressing a similar sentiment, Ernst & Young partner for retail & consumer products practice Paresh Parekh said: "Increase in service tax to 12 percent is likely to have an adverse impact on the already wafer-thin margins of retail companies, especially since service tax is not offset-able against VAT. Also, increase in standard excise duty from 10 percent to 12 percent may increase the prices of products."
(Source: Business Standard)