The government is considering re-invoking anti-profiteering provisions for a limited period to ensure that businesses pass on indirect tax benefits to consumers, following the proposed overhaul of the goods and services tax (GST) regime, according to a senior official.
“While the Centre remains committed to market-driven pricing, concerns over unfair profiteering cannot be ruled out if companies fail to reduce maximum retail prices (MRPs) in line with lower tax rates. We are planning to invoke anti-profiteering measures for up to two years so that businesses don’t pocket benefits of the lower rates,” the official said, requesting anonymity. An email sent to the finance ministry remained unanswered until the time of going to press.
