Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 19th January 2016, 20:20   #5236
BHPian
 
Join Date: Sep 2015
Location: Pune
Posts: 318
Thanked: 296 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by naveenroy View Post
Hahaha, I may be severely OT here but it is hilarious that people who cursed the previous government for the high oil prices (even when prices were high on the world market) are now supporting the high prices now. I mean, is there a logic to this?
Well, we would all like low oil prices. But its one thing to curse when prices are high and the govt keeps raking in the moolah (%age of price). That was excatly what the previous regime was going. Tax .. tax and more tax. I was actually expecting that some FM will put Fringe Benefit Tax on petrol and then give that money to some shady social program.

This time, the prices are actually low and the govt is not passing it on. Atleast I am not paying extra from my pocket. I also like that fact that LPG subsidies is being heavily discouraged.

All I am hoping for now is taxes on diesel to be on par with Petrol, then we will know if car buyers really like driving diesel or do they buy it just b'ca its cheaper to run.
freedom is online now   Reply With Quote
Old 20th January 2016, 08:43   #5237
Distinguished - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Kanpur
Posts: 6,638
Thanked: 3,056 Times
Infractions: 0/1 (4)
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sgiitk View Post
I saw people on another forum, since they fell states may hike VAT to pay for birthdays, havans, or chadors. They feel the centre may put it to better use.
Delhi has hiked VAT, to pay for the next hare brained scheme? I think they saw that petrol was about ₹2 costlier in neighboring Haryana so got greedy.
sgiitk is offline   Reply With Quote
Old 20th January 2016, 08:44   #5238
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,432
Thanked: 268 Times
Default Re: The Official Fuel Prices Thread

How opinions change on tax increase on fuel depending on who is doing the tax increase :-)
carboy is offline   (7) Thanks Reply With Quote
Old 20th January 2016, 13:42   #5239
BHPian
 
Join Date: Jul 2007
Location: Chennai
Posts: 156
Thanked: 59 Times
Default Re: The Official Fuel Prices Thread

Though I see people ranting on the tax hikes. In a country where number of Income Tax payers are less, this move will make sure that every body who uses fuel pay their own share of tax. Hopefully, if this move results in reduction in income tax (or increase the tax slab) this would be a perfect deal.
With too many vehicles on the road, low fuel prices are just a simple recipe for reckless usage and increased pollution.
sathya_g_m is offline   (2) Thanks Reply With Quote
Old 20th January 2016, 14:22   #5240
BHPian
 
Join Date: Sep 2015
Location: Pune
Posts: 318
Thanked: 296 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sathya_g_m View Post
Though I see people ranting on the tax hikes. In a country where number of Income Tax payers are less, this move will make sure that every body who uses fuel pay their own share of tax. Hopefully, if this move results in reduction in income tax (or increase the tax slab) this would be a perfect deal.
With too many vehicles on the road, low fuel prices are just a simple recipe for reckless usage and increased pollution.
Exactly what I tried to impress upon the members a few days back.
80/l 2 years back sounded very costly. 65/l in todays times is no pinch at all.

Any chance of rick/cab fare coming down with lower fuel prices? Nope.
freedom is online now   Reply With Quote
Old 20th January 2016, 14:40   #5241
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,432
Thanked: 268 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sathya_g_m View Post
Though I see people ranting on the tax hikes. In a country where number of Income Tax payers are less, this move will make sure that every body who uses fuel pay their own share of tax.
Why just for fuel? Why not increase taxes then on a lot of stuff - increase taxes on cars, increase taxes on tyres, increase taxes on car stereo, increase taxes on all car spare parts, increase taxes on engine oil.

And why stop at cars? Since income tax payers are less, why not increase taxes even more on 40"+TVs, air conditioners, computers, all mobile phones costing above 10K?

Quote:
Originally Posted by freedom View Post
Any chance of rick/cab fare coming down with lower fuel prices? Nope.

Most of them run on diesel/cng. And a cab company I use regularly reduced prices when diesel prices came down.

Last edited by carboy : 20th January 2016 at 14:41.
carboy is offline   Reply With Quote
Old 20th January 2016, 15:03   #5242
Senior - BHPian
 
Join Date: Jul 2010
Location: Bangalore
Posts: 1,566
Thanked: 2,363 Times
Default Re: The Official Fuel Prices Thread

The solution to increase tax revenue in a country with low single digit tax-payer coverage is moving away from income-based taxation to consumption-based taxation across the board, not arbitrarily taxing commodities that get the meekest protests.

I don't mind paying extra on my purchases, but as a citizen it's my right to know what's being done with that money. Too much to ask in India?

Last edited by Chetan_Rao : 20th January 2016 at 15:05.
Chetan_Rao is offline   (1) Thanks Reply With Quote
Old 20th January 2016, 15:08   #5243
Senior - BHPian
 
sourabhzen's Avatar
 
Join Date: Jun 2012
Location: GURGAON
Posts: 1,390
Thanked: 1,088 Times
Infractions: 0/1 (5)
Default Re: The Official Fuel Prices Thread

Why is Center Government continuously increasing excise? I think the basic fuel price is the result of center's greed and they know car owners do not count in their vote bank politics.
sourabhzen is offline   (1) Thanks Reply With Quote
Old 20th January 2016, 15:32   #5244
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,432
Thanked: 268 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Chetan_Rao View Post
The solution to increase tax revenue in a country with low single digit tax-payer coverage is moving away from income-based taxation to consumption-based taxation across the board, not arbitrarily taxing commodities that get the meekest protests.

I don't mind paying extra on my purchases, but as a citizen it's my right to know what's being done with that money. Too much to ask in India?
The thing about consumption based taxation/indirect taxation is that it is not progressive.

If I earn 5000 rupees a month, I will be pretty much be spending 100% of my income every month. So I am taxed on all my income.

If I earn 5 lakh rupees a month, i may just be spending 50% of my income every month. So I am taxed on only 50% of my income.

If I am Virat Kohli, I may only be spending only 20% of my income. So I am taxed on only 20% of my income.

So the richer you are, the lesser the percentage of your income which is taxed. Whether this is a good thing or bad is debatable.

Last edited by carboy : 20th January 2016 at 15:35.
carboy is offline   Reply With Quote
Old 20th January 2016, 16:31   #5245
BHPian
 
1lokesh's Avatar
 
Join Date: Dec 2014
Location: MP-09, MH-02,
Posts: 206
Thanked: 204 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by carboy View Post
The thing about consumption based taxation/indirect taxation is that it is not progressive.

If I earn 5000 rupees a month, I will be pretty much be spending 100% of my income every month. So I am taxed on all my income.

If I earn 5 lakh rupees a month, i may just be spending 50% of my income every month. So I am taxed on only 50% of my income.

If I am Virat Kohli, I may only be spending only 20% of my income. So I am taxed on only 20% of my income.

So the richer you are, the lesser the percentage of your income which is taxed. Whether this is a good thing or bad is debatable.
The thing is that only 3% of the population pays income tax. Which is the biggest bias. Consumption based tax will be a big boost to remove such bias.

Also, the money not spent (in case of rich) is sitting duck if they achieve the impossible, i.e.. tax each and every transaction. Highly doubt this scenario though.
1lokesh is offline   (1) Thanks Reply With Quote
Old 20th January 2016, 16:37   #5246
BHPian
 
Join Date: Jul 2007
Location: Chennai
Posts: 156
Thanked: 59 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by carboy View Post
And why stop at cars? Since income tax payers are less, why not increase taxes even more on 40"+TVs, air conditioners, computers, all mobile phones costing above 10K?
Agreed! That should be the way to move. However, our governments doesnt have guts to increase tax if it directly increases the prices, unless they are left with no other option. I am sure they wouldnt have increased the excise duty on fuel if the crude price remained high/stable, they just cashed in on the price drop to fill their coffers.

I hope this extra money they make will make them give more relief to income tax payers (atleast the salaried class) in coming budget. I am waiting to see if it is going to be a day dream or day light robbery.
sathya_g_m is offline   Reply With Quote
Old 20th January 2016, 16:39   #5247
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,432
Thanked: 268 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by 1lokesh View Post
Also, the money not spent (in case of rich) is sitting duck if they achieve the impossible, i.e.. tax each and every transaction. Highly doubt this scenario though.
What do you mean by tax each and every transaction?
carboy is offline   Reply With Quote
Old 20th January 2016, 16:42   #5248
BHPian
 
1lokesh's Avatar
 
Join Date: Dec 2014
Location: MP-09, MH-02,
Posts: 206
Thanked: 204 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by carboy View Post
What do you mean by tax each and every transaction?
Like everything that is paid is on record and has receipt. And all of them are taxed. from your maid to petrol purchase. I know its something very very difficult, but not really impossible to achieve.
1lokesh is offline   Reply With Quote
Old 20th January 2016, 16:45   #5249
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,432
Thanked: 268 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by 1lokesh View Post
Like everything that is paid is on record and has receipt. And all of them are taxed. from your maid to petrol purchase. I know its something very very difficult, but not really impossible to achieve.
How will you achieve it? If it were possible to achieve it, then there wouldn't be so much black money. And taxing every transaction will make sure there is more and more undocumented transactions.
carboy is offline   Reply With Quote
Old 20th January 2016, 16:46   #5250
Senior - BHPian
 
Join Date: Jul 2010
Location: Bangalore
Posts: 1,566
Thanked: 2,363 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by carboy View Post
The thing about consumption based taxation/indirect taxation is that it is not progressive......
I don't disagree with the argument per se, but India's taxation scenario is too immature to bother about stuff like that right now.

In a country where only ~3% pay taxes, our first priority should be to think about widening the tax-payer base, and consumption-based tax is the obvious way to go. Once we hit an acceptable level w.r.t. user base (may take a generation TBH), rationalization would be the next step.

Get everyone (or as many as possible) to pay some taxes, then bother about how much is fair. We need to stop being regressive first, worrying about being progressive is a future step.
Chetan_Rao is offline   (1) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
BMW to drop prices due to increased localisation. EDIT: New prices announced Aditya The Indian Car Scene 38 10th July 2015 21:19
Have official pioneer HU prices fallen? greenhorn In-Car Entertainment 3 11th January 2010 01:36
Hyundai Cut prices- New detailed prices. harry10 The Indian Car Scene 5 9th December 2008 00:45
Are these good prices for Tata\Fiat vehicles? Corporate Offer Prices sahakar The Indian Car Scene 15 8th July 2008 23:03


All times are GMT +5.5. The time now is 17:46.

Copyright 2000 - 2016, Team-BHP.com
Proudly powered by E2E Networks