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Old 15th April 2008, 01:48   #16
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Originally Posted by Mayavi View Post
ishan ji, please read my PPPS. Let me reproduce it here for your convenience

So the Central tax which you mentioned will go to the Center (DELHI) and state tax over and above central tax will go to state.


Btw, I am not misguiding any users.. ask yourselves, if Banglore, Mum and Chennai need the extra tax on Fuel to fund the hare brained schemes they come up with, why doesn't Delhi charge it? It has its own share of hare brained schemes as well. The answer is that it doesn't need the money from Fuel surcharge as it has other soruces. Now ask yourselves, what other sources of income does a small city like Delhi has that it can build a multi-billion dollar metro and swanky new stadiums? Then ask yourselves how come Mumbai (which generates almost 35% of taxes) doesn't have a decent Metro or had to wait for 2 years to build a 1500 cr drainage system. Because delhi is the AUTHORITY which sanctions projects in all states including Delhi(it sanctioned 2K crores for Hyd metro yesterday)!!! While this isn't completely wrong (if mum keeps all its taxes, who will fund Kashmir?), there are some complaints about the way Delhi distributes funds and it has mostly to do with politics and the party in power in that state.

If you still do not understand it, imagine a family in which Husband, Wife work but all their pay checks go to the Wife. So Wife doesn't have to ask anyone to buy what she likes while husband has to appeal for funds for a new ICE set up. Kapisch?

Anyway, my last post on this subject... I request mods to delete my off-topic posts. I sense that more and more delhites are gonna hit this thread to beat me up.
Thank you sir, for your kind gesture of pointing me to your PPPS. I'm as much a Delhiite as a UP-ite and to be frank the extra 10% that I pay for fuel in UP over Delhi has not resulted in any improvement in the roads of the states over the past 20 years that I've been able to decipher. Maybe I'm wrong or maybe I'm blind, I don't know about that.

As for the expensive fuel, where does the extra tax go again? If Delhi collects everything & keeps it for itself then what about the upcoming 4/6-lane highways & the GQ's? Who's paying for them? AFAIK, the states aren't & even the private developers require some kind of Govt. funds & participation to develop them. Especially the non-GQ routes.

Anyway, as you demonstrated above, your knowledge of these issues is far greater than mine & I shall refrain on commenting on the same in the future.

P.S. And yes, state projects like roads in Mumbai are funded by the state govt. even in Delhi, so for bad roads in Mumbai/Bangalore, please don't blame the centre.

Last edited by iraghava : 15th April 2008 at 01:50.
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Old 15th April 2008, 02:19   #17
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No sir, I do not think I know any more than you do and I apologize if I came across that way, I didn't intend to.

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As for the expensive fuel, where does the extra tax go again? If Delhi collects everything & keeps it for itself then what about the upcoming 4/6-lane highways & the GQ's? Who's paying for them?
Like I said in my post

Quote:
While this isn't completely wrong (if mum keeps all its taxes, who will fund Kashmir?), there are some complaints about the way Delhi distributes funds and it has mostly to do with politics and the party in power in that state.
There is nothing wrong with the current model of tax distribution. The only grouse is that like the wife in my example, Delhi can get things done easily on the infrastructure side as it holds the purse strings while other states have to wait for their turn now matter how important their needs are. And let me stress again that I am not blaming Delhi for roads or high fuel charges or for anything. It is just the way our system is built. Politicians make sure that Delhi gets the best infrastructure, because they have a stake in it, so state capitals feel left out. Similarly second tier cities in individual states feel left out when state capitals get all the money. Its a cycle. The solution is for the states and towns to have some sort of autonomy and share of the tax money they are generating. This way Mumbai can generate the money it needs for a Metro or a Sea-link instead of waiting for Central money. This is how cities in the US work and I am sure Europe as well. I believe this is the main reason why there are 100's of top class cities in US and Europe compared as against one in India (infra wise).

Last edited by Mayavi : 15th April 2008 at 02:25.
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Old 15th April 2008, 08:27   #18
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I seriously doubt that the Central Govt. lets New Delhi keep all the money from the other states and develop its own infrastructure at their cost.
I don't think any first world or second world country in the world does that.

As far as I know, all state projects are funded from their respective state treasuries and other external loans (World Bank etc.) and that includes Delhi too.

Keep in mind that Delhi has a much smaller urban area (excluding NCR) compared to other urban centres and it gets to keep all its taxes, whereas cities like Mumbai and Bangalore have their respective states to take care of. It's a lot like Singapore which has a small urban concentration and a high income from taxes and other sources.

In fact most of the ongoing projects for Commonwealth Games and Formula 1 have either been funded by external loans or private parties.

Last edited by sujaylahiri : 15th April 2008 at 08:31.
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Old 15th April 2008, 09:01   #19
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Mayavi,

Not only are your posts completely wrong - you refuse to google and bother to find out facts, or UNDERSTAND the reason.

Firstly, about taxes: http://ppac.org.in/OPM/Sales_tax_feb08.htm
If you will bother to read closely, you will see something called CST - that is what the center gets. VAT is levied as per states' convenience. I have worked in this industry so I can tell you. Which is why also andhra reduced ATF taxes to 4% from 28% - else Delhi would've announced it. But it seems you missed that news, or similar news from Kerala, or a similar news from Maharashtra.

And since you bother to bring half-baked arguments about Mumbai waiting years for metro, it is because things like Land are required for ALL these things. Land is a state subject. Delhi govt is helping with land. In mumbai you should be well aware. Central govt ("Delhi") can just provide a share/viability gap funding. And delhi getting a metro quicker? Word of the day for you: JBIC.

Delhi Metro Rail Corporation Ltd. (DMRC) clearly mentions that JBIC is funding 64% of the cost for Delhi Metro. So the money turns up with japanese clockwork precision . Elsewhere is not the same. So its not like your husband ICE example by a long shot.

If its still not clear, we can start a "who funds what infrastructure" thread for the knowledge of other people on the forum - I do recognize alot of people have such completely misguided fundae based on hearsay.

Last edited by phamilyman : 15th April 2008 at 09:03.
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Old 15th April 2008, 09:58   #20
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Originally Posted by strips007 View Post
Also petrol is around 45.90 in GGN and one rupee less in Delhi, I dont know how to edit my last post
Bangalore pays 7rs more and get 70% worse roads.
Forget people's behavior on road and all those blah blah blah. I ask, are you giving us good infrastructure? If not then why so much of tax.
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Old 15th April 2008, 10:37   #21
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In Bangalore, we pay a lot in terms of tax while buying a car and fuel.

The rental rates are high, but not as high as Mumbai. Sometimes I think it makes sense to move to my native, Cochin in Kerala.

Where is my pay hike?

Last edited by PatienceWins : 15th April 2008 at 10:38.
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Old 15th April 2008, 11:38   #22
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Originally Posted by manasingh View Post
Few days ago piyuspande bought a 1.6 palio for 4.3lacs (Someone even got it for 4.17 last year). Its something bangalore-mind can't believe. So I talked to gurgaon-fiat-dealer. I am shocked to learn the price.
Ex-showroom price for 1.1 & 1.6 palio stile is 3.7 & 4.3 in gurgaon. This is just 3k more in bangalore.
Insurance+Life Time Road Tax+Registration is just 30k in Gurgaon but its around 70k in bangalore. Just Double.
Insurance is same everywhere around 14k. That means, Roadtax is 15k in gurgaon but 50k in bangalore.
Is Haryana govt far better than karnataka govt???
Why can't we have same tax across India???
Seniors please enlighten me.

Manas
hey manas,

this time again you got me wrong....actually i mentioned that i paid Rs 8500 which includes 1.5% of ex showroom price as road tax plus registration fee, so that comes out Rs 6400 as RT and Rs 2100 as Reg Fee....i don't know why is this so but i guess we guys from NCR have to pay least RT as compared to other cities......and moreover we have far better roads to drive, against that mere amount we pay....

one more thing to clarify that is this road tax is the amount which you have to once for a particular city got it refunded when you plan to leave that particular city......so even if you buy your vehicle from gurgaon and plan to shift to bangalore then your RT will be paid back to you from gurgaon authority and then you have to pay the RT to drive in bangalore.....and vice-versa....

so if you want cheap vehicle and crave for roads to drive on......shift to NCR.....
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Old 17th April 2008, 10:43   #23
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My two cents on this debate:

1) Delhi does not have large rural areas to take care of.
2) It is home to a lot of VIP's and there is pressure on the civic agencies to provide a minimum level os service in atleast some parts of the city.
3) Since Delhi is not a complete state the state govt has limited powers. This prevents them to come up with populist schemes which bankrupt the other state ( free color tv's for the below poverty hine house holds, rice at Rs 2, free electricity to farmers in punjab) and a larger portion of the money collected is spent on roads.
4) Events like commonwealth games etc have galvanised the ste and central authorities to put thei best foot forward and improve urban infrastructure. The govt is more sensitive to the perception a few thousand foreigners and media will carry when they visit India for the games than the reality the 1 billion plus population faces on a daily basis.

As a resident of NCR I do not mind this development as atleast some things are changing for the better.
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Old 17th April 2008, 11:35   #24
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Bangalore is the worst place to live in (sky-high home rent deposits and rents, horrible and narrow roads, no street lights, dusty roads, highest road tax) with the best people (I've lived in Hyderabad, Chennai and Bangalore. Bangaloreans are the most friendliest) and the best climate.

Last edited by srikat : 17th April 2008 at 11:38.
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Old 17th April 2008, 11:56   #25
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Originally Posted by srikat View Post
Bangalore is the worst place to live in (sky-high home rent deposits and rents, horrible and narrow roads, no street lights, dusty roads, highest road tax) with the best people (I've lived in Hyderabad, Chennai and Bangalore. Bangaloreans are the most friendliest) and the best climate.
Its still attractive to live as a whole !!

Remember what Indira Gandhi said when someone told her that Singapore PM had asked India to emulate the way Singapore manages the city.
(I dont remember the exact incident now but the gist is the same)

Her reply was "We dont need to learn from a guy who manages a big shopping mall".

There will be a lot of complexities when you have to deal with a big region.
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Old 25th August 2008, 00:44   #26
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Here is the Lifetime Tax info for Bangalore - Life Time Tax for Motor Cars, Jeeps, Omni Buses and Private Service Vehicles.
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Old 31st January 2009, 15:11   #27
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Guys, this thread was to comment on the difference in on road price in two regions of the country and in the space on two pages it has morphed into which is a better place to stay, weather, availability of land, taxes on fuel, and friendly or otherwise people.
Would appriciate some info on the breakup of OTR cost in various states as this could be VERRY useful to some of us.
PS see my signature.
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