Personal healthcare products manufacturer PZ Cussons has said it will not raise prices despite
the new 10 per cent Excise duty regime on cosmetics.
East Africa managing director Sekar Ramamoorthy yesterday said the market has started feeling the impact of the new duty introduced by Treasury CS Henry Rotich to increase government revenues for this financial year.
The
new levy, Ramamoorthy
said, will force them to increase prices or take profit cuts.
“We
don’t plan to pass the cost to our consumers but we must accept it is a
difficult time for business in East Africa,” he said at the launch
of a promotion to reward the firm's customers with up to Sh1million.
The increased tax compounds the problem of increasing competition from counterfeit and sub-standard products in the local market, which have caused manufacturers losses.
Ramamoorthy said the company, known for its flagship brand Imperial leather soap, will maintain the current retail prices for its wide range of products.
The MD said the firm targets to increase its presence in the region with Kenya as its
manufacturing base.
