price of maggi
Is Maggi price rise: Late night craving, don’t feel like cooking, tired from outside, need to eat something hot in winter, need to satisfy hunger in the mountains or need to cook something quickly… Gen-Z and Millennials First of all I remember Maggi. But now your Maggi may become expensive. This is because Switzerland has decided to remove the Most Favored Nation status from India. Now let us know what is the relation between these two things.
Shock to Swiss companies
Switzerland has decided to suspend the Most Favored Nation (MFN) clause under the Double Taxation Avoidance Agreement with India from January 1, 2025. This clause came in the year 1994. Withdrawal of MFN status will have a direct impact on Swiss companies. These companies may now have to pay up to 10 percent tax on dividends received from Indian income sources, which is currently less. Now Nestlé, the parent company of Maggi brand, is also a Swiss company. If the tax burden on Nestle increases, then it can increase the prices of its products, one of which is Maggi. However, the company has not said anything about increasing the price yet.
What is the most favored nation clause?
The Most Favored Nation clause ensures that the parties involved in the agreements between the two countries get equal benefits. It has preferential trade terms. When a country is granted this status, it is expected to cut tariffs. Besides, export-import of many products between the two countries also happens without any duty. A country with MFN is given more preference in trade. But Switzerland believes that India has not given it equal benefits as those countries with which India has more favorable tax agreements. In such a situation, now the Swiss government has decided to abolish this clause from the year 2025, citing lack of reciprocity.
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