Maggi is a popular food item consumed in almost every household. Whether it’s children, adults, or older people, everyone enjoys it. Maggi is easily available in the market and can be prepared quickly whenever someone feels a little hungry. However, if you are fond of eating Maggi, some news might cause you trouble. The Maggi manufacturing company, Nestle, is expected to make a big decision soon, which could be implemented from January 1. This decision will impact everyone who consumes Maggi.
Maggi Price Hike Likely: Decision Soon to Be Announced
The price of Maggi may increase as the company is expected to take a decision soon. The revised prices are likely to be implemented from January 1. If this happens, it will come as disappointing news for Maggi lovers. However, no information has been revealed yet regarding the extent of the price hike.
Why Will Maggi’s Price Increase?
The price hike has emerged due to a recent development involving Switzerland revoking India’s “Most Favored Nation” (MFN) status. This decision follows a court ruling against Nestle, which will now lead to increased tax burdens on Indian companies operating in Switzerland.
Maggi, the beloved two-minute noodles in India, may see a price increase starting January 1, 2025, as reported by Asianet News. #maggi #india #prices #hike #switzerland #newsupdate #heybawa #heybawanews pic.twitter.com/umfluozIsA
— HEY BAWA (@heybawaa) December 16, 2024
https://platform.twitter.com/widgets.js
Tax Impact Starting January 2025
As a result of this decision, Indian companies will have to pay higher taxes starting January 1, 2025. The MFN provision under the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland offered trade-related tax exemptions. With the cancellation of this status, Indian companies will lose these benefits, directly leading to higher operational costs.
This additional tax burden on Nestle is one of the factors likely to influence the price hike.
Swiss Companies in India to Face Tax Impact
With the cancellation of MFN status, Swiss companies operating in India will also face higher taxes. Nestle, the parent company of Maggi, is based in Switzerland. As Nestle’s tax burden increases, it is likely to impact Maggi, leading to a potential price hike.
Other Nestle Products May Also Get Expensive
The impact won’t be limited to Maggi alone. Other Nestle products sold in India, such as dairy products, KitKat chocolate, ice cream, and baby food, could also see a price increase.
How Much Will the Prices Rise?
Following the cancellation of MFN status, Swiss companies in India will now have to pay a dividend tax of up to 10%, which was earlier 5%. To compensate for this tax hike, companies may reduce their profit margins or increase product prices, including Maggi. However, the exact amount of the price hike has not been decided yet.