“The government of India has taken a very good and bold decision to lower the taxation for the consumer and this will go a long way in the eating out,” Anjan Chatterjee, Founder & MD of Speciality Restaurants told CNBC-TV18.
Restaurant stocks are in focus as channel checks suggest they have hiked prices to keep post goods and services tax (GST) rates same.
In an interview with CNBC-TV18, Anjan Chatterjee, Founder & MD of Speciality Restaurants spoke about the latest happenings in his company and sector.
“The government of India has taken a very good and bold decision to lower the taxation for the consumer and this will go a long way in the eating out,” he said.
Speaking on value added tax (VAT) he said that pre-GST returns and inputs were 100 percent same as this, so there is no change post GST. The average VAT was between 13 percent and 14 percent. So the consumer on an average was paying total tax of 19.5 percent.
In order to balance taxes and prices, we will be compelled to raise the prices of products, said Chatterjee.
According to him, demand will pick up further more post government’s decision to lower the taxation.For full interview, watch accompanying video...Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.