Daily Times

KARACHI: Eidul Fitr sales on domestic appliances including deep freezer, refrigerator, microwaves oven and cooking range recorded a decrease of 30 percent this Ramazan after an increase in taxes, importers and traders said.

“Every Ramazan, sale of these items usually cover around 20 percent of the total annual sale,” said Arshad Saeed, member of a traders’ body. “The average price of a freezer rose around Rs 4,500 to 7,500 while a normal fridge has registered a rise of Rs 3,500 to Rs 5,500 after imposition of various duties and taxes.”

Similarly, he said, average price of microwaves oven has increased with a ratio of Rs 1,800 to 3,000 per machinery and are currently priced at Rs 9,000 to Rs 12,000. Cooking range registered an increase of Rs 2,500 to Rs 3,500 and currently available at Rs 12,500 to Rs 16,000 per unit, he informed.

According to the Karachi Electronics Dealers Association (KEDA), the sale was depressed by around 40 percent during Ramazan. A member of KEDA said the manufacturers of domestic appliances announced schemes for promotion of sales. Besides, the traders also curtailed their margins by around 5-7 percent.

“The importers of these machineries were burdened with additional duties and taxes. Despite cut in profits, the buyers appeared disinclined to purchase and only those who were in dire need and could afford the higher price, are buying products of their choice. Sale during Ramazan last year was around 15 percent of the total sale in the year, as people bought the affordable items in order to celebrate Eid,” he added.

Arshad Saeed of Apollo Electronics at Abdullah Haroon Road said Chinese and Taiwan-made products were in demand this time, but they would not be able to grab more than 15 percent of market share, as there was no warranty and non-availability of after-sale service for such products. “People preferred locally-manufactured refrigerators and deep freezers, as the local companies guarantee after-sale service and their products accompany warranty for a certain period,” he added. He said the amount that the traders earned during this Ramazan was equivalent to 10 percent of their entire year’s sale. In yesteryears, he added, from Ramazan 10 to the eve of Eid, the sale of deep freezers remains frenzied and we used to keep our shops open even after midnight.