2 Minute Noodles to Get Costly from January 1
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A popular noodle brand, is expected to become more expensive starting from January 1, 2025, due to changes in India-Switzerland trade relations. Switzerland has made the decision to suspend the Most-Favored-Nation (MFN) clause under its 1994 Double Taxation Avoidance Agreement (DTAA) with India. This clause typically ensures that both countries provide each other with the most favorable tax treatment in their trade agreements. By suspending this clause, Switzerland’s decision is expected to have significant implications for Swiss companies operating in India.
A Swiss companies affected by this change. The suspension of the MFN clause is anticipated to lead to an increase in the tax burden on Swiss companies in India, which may, in turn, raise the costs of manufacturing and importing goods. As a result, Nestlé may pass on these increased costs to consumers, leading to a price hike for Maggi noodles.
This move by Switzerland comes amid a broader trade dispute between the two countries, which has resulted in changes to tax and trade policies. While it is unclear exactly how much the price of Maggi will increase, consumers can expect higher prices for the product starting in 2025 due to the added financial pressure on Nestlé. The price hike would mark a significant shift for Maggi, which has been a staple in Indian households for decades due to its affordability and convenience.
