Cosmetics tax costs PZ Cussons revenue
Soap manufacturing company PZ Cussons has said it has lost up to 3 percent of its total revenue after National Treasury Cabinet Secretary Henry Rotich imposed a 10 percent excise duty on cosmetics and beauty products.
PZ Cussons Managing Director Sekar Ramamoorthy said the company is however not intending to increase the prices of its product to mitigate the revenue loss.
“Definitely we have all been impacted by the excise duty on cosmetics and beauty products and at some time we will have to pass on to the consumers but at the moment we have no plans of raising the prices,” said Sekar.
Speaking during the launch of a promotion dubbed, “Ng’ara na million” Sekar said they now plan to expand their market in the East Africa region and also venture into the food products market to increase its revenue base.
“We want to expand the market of East Africa and particularly Kenya where the brand is so strong, we want to reach more consumers of our products,” added Sekar.
PZ Cussons East Africa Ltd in September 2015 re-launched its Imperial Leather brands into the Kenyan market.
PZ Cussons celebrated its 125 years in 2009 and over 110 years it has been in the African market.
The company which is listed in the London stock exchange operates across the globe, with visibility in Africa, Asia and Europe.