Britannia Optimistic About GST Reforms Boosting Food Consumption
Britannia's Vice-Chairman, Varun Berry, projects increased food consumption following proposed GST reforms, which may reduce tax rates on food products to 5%. The move is expected to enhance demand, with benefits likely to be relayed to consumers within 1.5 months as biscuits and other food items become more affordable.
Britannia is bullish on the potential of proposed GST reforms to stimulate food consumption, according to its Executive Vice-Chairman and CEO, Varun Berry. The reforms could lower the tax on biscuits and other food items to 5%, a change that Berry believes will significantly impact consumer purchasing patterns positively.
"The rationalization of GST, paired with a favorable monsoon, are positive indicators for the coming quarters," stated Berry, adding that the demand scenario looks set to improve. The anticipated tax reduction is expected to make food products more affordable, thus driving up consumption.
The GST Council, led by the Union Finance Minister, will convene to debate these reforms. Under the current regime, biscuits fall under an 18% tax bracket, but the proposed changes could see them move into a moderate 5% category, benefiting consumers across diverse markets.
(With inputs from agencies.)
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