Ministry urges early cut in air-con prices

       The Commerce Ministry is calling on manufacturers of air-conditiong units to bring their retail prices down in line with their lower tax liability.
       The Internal Trade Department is studying the manufacturing costs of air-conditioners to see if retail prices can be brought down by 10 to 15 per cent, or by Bt2,000 to Bt2,500 per unit, in order to lower the burden on consumers.
       Director-general Yangyong Phuangrach said manufacturers should start lowering their retail prices because they will be benefiting greatly from the waiver of 17-per-cent excise duty.
       "The department is studying the product's price structuring and producers should be able to cut their retail prices as soon as their tax burden eases," he said.
       According to the department, most plants have stockpiles, so producers should have no problems in reducing their retail prices in the next few weeks.
       The Cabinet this week agreed to waive excise duty on air-conditioners after manufacturers claimed that the 17-per-cent tax was far too much of a burden and ate into their profit margins.
       Yangyong said manufacturers should use the waiver as an opportunity to stimulate the market and consumer interest.