India’s perfumery and cosmetics sector is preparing for raw material import challenges as a result of the new GST hike
The Indian perfumery and cosmetics sector is facing increased taxation and a shortage of raw material supplies even as it is struggling with the country's new Goods and Services Tax (GST).
In the national budget, presented on 1 February, Indian Finance Minister Arun Jaitley doubled the customs duties for cosmetic and toiletry preparation products from 10% to 20% "to provide adequate protection to the domestic industry".
The affected products include perfume and toilet water, beauty and make-up products, including those for hair care, sun care, shaving and deodorant products.
However, local cosmetics manufacturers do not see much protection or benefit from the duty hike, Kajal Anand, President of the Mumbai-based All India Cosmetic Manufacturers' Association (AICMI), told Cosmetics Business.
"The 10% increase in duty would make . . .
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