Union Budget 2012-13

Effect on Consumer/Businessman

Topics of Analysis:
Electronics Goods(Sony Center) Wine & Ciggrate Shop(Kranti Wines) Apparel & Clothes(Wrangler Store) FMCG Products(Reliance Fresh) Mobile Phones & Accessories(KD Mobiles)

Electronics Goods(Sony Center)

BUDGETARY PROVISION
LCD and LED panels exempted from custom duty.

EFFECT
This automatically reduces the price of the TV and Laptops from which consumer is benefited and manufacturer are benefited. Retailer has no direct benefit but increase in sales expected.

Wine & Ciggrate Shop(Kranti Wines)

BUDGETARY PROVISION
Increase in basic excise duty on cigarettes and handrolled bidis from 10-15 %.

EFFECT
It is an effort to gain revenue and structure the unorganized sector. This would have both good as well as bad impact. Consumers will have to pay more which results into hole in pocket while most of consumer base might decrease due to high cost.

Apparel & Clothes(Wrangler Store)

BUDGETARY PROVISION
Reduction in effective excise duty rate from 4.5% to 3.7% on branded apparel due to increase in abatement percentage from 55% to 70% MRP

EFFECT
With increase in customs duty, excise duty, service tax rates and more services coming under the ambit of service tax law, the input indirect tax cost for the retail sector would increase.

FMCG Products(Reliance Fresh)

BUDGETARY PROVISION
Direct tax: Exemption limit of personal income tax increased, will be leading to augmentation in the disposable income.

EFFECT
This should give stimulus to the demand of FMCG products. Increase in sale is expected but other inflatory factors need to be kept in mind.

Mobile Phones & Accessories (KD Mobiles)

BUDGETARY PROVISION
Mobile phone parts exempted from basic customs duty.

EFFECT
Cost of Mobile phones manufactured in India gets reduced and be more affordable for the consumers. This have the positive affect on the consumer and manufacturer.

THANK YOU !

Manish Ranjan Singh MBA(General) Division-B Roll No.-65