IKEA furniture and Jimmy Choo shoes will get costlier after budget 2020

IKEA furniture and Jimmy Choo shoes will get costlier after budget 2020

  • People will have to shell extra money in order to get imported shoes from brands like Jimmy Choo, Gucci, Loui Vuitton and Loberton Paris.
  • Single-brand retailers of furniture of foreign origin who sell in India will now have to pay a higher customs duty of 25% compared to the existing 20%.
  • Other than furniture, some of the other products that IKEA sells are also impacted.
People will have to shell extra money in order to get imported shoes from brands like Jimmy Choo, Gucci, Loui Vuitton and Loberton Paris. Single-brand retailers of furniture of foreign origin who sell in India will now have to pay a higher customs duty of 25% compared to the existing 20%.

“Labour intensive sectors in MSME are critical for employment generation. Cheap and low-quality imports are an impediment to their growth. Special attention has been taken to put measured restraint on import of those items which are being produced by our MSMEs with better quality. Keeping in view the need of this sector, customs duty is being raised on items like footwear and furniture,” Nirmala Sitharaman said

Single-brand retailers like Ikea are mandated to source an average of at least 30% of their inputs from India in the first five years. Ikea is into 1.5 years retail operations.

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“IKEA is disappointed with the customs duty hike announced in the Union Budget 2020-21 which impacts furniture and many other home furnishing categories. We are further evaluating the impact of the hike on our total business,” Peter Betzel, CEO and CSO, IKEA India told Business Insider India.

Other than furniture, some of the other products that IKEA sells are also impacted.

The government will review the custom duty on remaining items on September, 2020. Sitharaman has also invited suggestions in respect to the custom laws. Other brands that sell imported stuff in India include Nike, Adidas , Miniso, and Woodland.
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