Soft Drink Majors To Lobby Against Proposed Tarrif Hike
A proposal by the finance ministry to hike the tariff rate on a 300 ml crate from Rs 65 to Rs 78 could force manufacturers to increase the price of soft drinks by at least 50 paise per bottle.
Soft drink bottlers are likely to soon make a representation to the concerned authorities against the proposed hike.
According to government sources, the change in the valuation base for each crate without any increase in the excise rate which is at 40 per cent ad valorem would force bottlers to fork out an additional Rs 6 per crate.
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The tariff rate is calculated by the excise department on the cost of production of a crate and includes other items like transportation charges.
The move comes at a time when soft drink majors are facing one of their toughest seasons yet in terms of sales.
In the period between January and April this year, normal weather conditions have led to a marginal increase in the consumption of soft drinks. In fact, there was negative growth in the consumption of soft drinks in some sectors in April.