With tax rise on high-end goods on the cards, retailers are working out deals for customers.
Thinking of buying a fridge, air conditioner, TV, microwave or LCD, but want to wait for the budget? Here’s some good news.
At least one prominent retail outlet has worked out a deal to ensure that you do not end up a loser.
The eZone, Big Bazaar, offer is if a person buys any commodity, and post budget its price falls, the customer will be refunded twice the difference of that amount. “There is a lot of speculation on consumer durables and electronic prices post budget. So, we have decided to refund the difference if prices fall. The refund will be twice the actual difference,” said Atul Takle, head, corporate communications in charge of the Pantaloon Retail India Pvt Ltd. The offer will last till 3 pm on February 26, budget day. “The refund will be in the form of eZone vouchers,” Takle added.
While Big Bazaar is already doling out offers, two other prominent retail giants are opting to wait and watch. They are hoping for the best to come out and are keeping their fingers crossed on taxes. Nilesh Gupta, managing partner Vijay Sales, said, “We are hoping that there is no increase in excise and custom duties.
Chief executive officer of Croma, Ajit Joshi, said, “There needs to be a change in the mindset. Urbanisation is creeping in and necessities are changing. Fridges and TVs are not luxury items anymore and taxes on them should not be increased. Today, food inflation is at 18% and since both husband and wife work, storage and heating facilities are necessities. In fact, with 30% of food being wasted, more and more storage space should be created.”
Vijay Sales is actually looking forward to some kind of manoeuvring to keep customers coming in. “The government does not lose out with lower taxes. People buy more and revenue comes to them. But, with all that we are reading, we may expand the EMI scheme post budget,” Gupta said. At present, Vijay Sales is offering EMIs of Rs499 on LCDs.
“We are planning to extend it to ACs and refrigerators as they are priced higher. A 4-5% rise in taxes could end up with a cumulative price rise of 7% for customers, which will lead to fall in sales. Unlike microwaves that are cheaper, refrigerators, TV sets and washing machines are priced higher.
Post budget we may have EMIs covering 70-75 brands.”
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