Toys and sporting goods industry expects that the price of toys will rise steeply in India in the coming days.
Ishmeet Singh, country manager of Mattel, said the industry has already been struggling with recent changes including Goods and Services Tax. Increased rates of customs duty will inevitably lead to an increase in toy prices.
Ishmeet commented: “As per the Budget 2018, there has been a substantial increase in customs duty to 20% for the category of Toys and Sports Goods. This combined with the other policy changes that have been implemented over the last six months, viz. higher rates of taxes under GST rates and stricter import regulations, will result in an overall increase in the price of toys by more than 20%.”
He added: “While the government of India has recognised the importance of promoting the critical role of play in the overall development of a child, these policy changes might prove to be detrimental to this vision.”