The Goods and Service Tax (GST) to be implemented from July 1, 2017 will adversely impact Ayush-based personal care products, according to Ramesh Viswanathan, Managing Director, Vishal Personal Care Pvt Ltd.
Ayush category includes ayurveda, yoga, naturopathy, unani, siddha and homoeopathy. "Except hair oil, all other products are included in 28 per cent tax slab which translates into 7 to 8 per cent increase in taxation at the national level,’’ Viswanathan told news persons at a press conference here on Wednesday.
At present, the tax rates on Ayush-based personal care products vary among the states. In Andhra Pradesh and Telangana, for instance, the effective taxation is 16.5 per cent, while in Tamil Nadu it is around 21 per cent.
"While the government is aggressively promoting Indian culture and ayurveda globally, higher tax incidence under GST will make ayurvedic FMCG products costly and out of reach for common people,’’ he said.
Industry representatives had submitted representations about the need to bring down the GST slab on Ayush products to 12 per cent. "Nothing has happened so far. But we are hoping that our demand will be met in the last and final revision of tax slabs on June 30,’’ Ramesh Viswanatha said.
As per industry estimates, while the total national market for personal care products is valued at about Rs 35,000 crore, Ayush-based products account for nearly Rs 6,000 crore.
Vishal Personal Care Pvt Ltd, which sells under Banjara’s brand, had a turnover of Rs 100 crore last year.