New Delhi: Beverages major Coca-Cola India on Tuesday announced that prices of its packaged drinking water brand Kinley will be cut while aerated drinks will get slightly more expensive.
The new pricing strategy has been announced with the country’s biggest indirect tax reform — the Goods and Services Tax — just around the corner.
In addition, the company will launch affordable “Value Water” segment priced at significantly lower than the current portfolio of Kinley water, and also an affordable range of aerated beverages to cater to price sensitive consumers, it said in a statement.
“Aerated beverages have been the worst hit category of beverages. It has undergone a series of tax hikes both at the central and state levels in the past few years. The proposed tax of 40 per cent is significantly higher than the current weighted average national tax incidence,” the statement said.
“The company has therefore no choice but to minimally increase prices even after absorbing a significant portion of the tax increase.”
The statement said the Coca-Cola has decided to absorb the tax incidence on juices/juice-based drinks, which has gone up marginally under the 12 per cent tax slab, and hold the prices.
“GST is a landmark reform for creating a unified taxation system in the country. Since GST is expected to propel India’s growth story forward and benefit society at large, we are committed to provide our consumers with the right value for money with various refreshing options,” said T. Krishnakumar, Business Unit President Coca-Cola India and South West Asia.
“We will pass on the taxation benefits to the consumers and make all attempts to absorb the maximum impact of the escalation of tax in some categories of our beverage portfolio.” (IANS)