Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! I've done some math n the figure is mindboggling.
I am planning of buying the over priced Crysta n did some calculations for myself.
Now the on road price for the ZX manual turns out to be Rs.27lakhs.
So I earn Rs. 36lakhs, pay Rs.9 lakhs as IT, then I end up having Rs27 lakhs ro pay for my crysta. At this stage I've paid 30% tax.
Next the exshowroom price of this car is Rs.21 lakhs of which 50% is tax( sales tax, GST etc etc tax) ie Rs.10.5lakhs.
Road tax amounts to Rs 4.5lakhs.
So in the end for a vehicle with its On- road price being Rs.27lakhs.
Total taxes paid are- Income tax-Rs.9 lakhs + all other indirect taxes Rs.10.5 lakhs + Road tax Rs 4.5lakhs. Totally amounting to Rs 24 lakhs. ................Please note this amount does not include taxes paid by the component suppliers and insurance GST( both together I guess they would contribute to 5% or more of the total cost of vehicle).
So in the end after earning Rs.36 lakhs I pay Rs.24lakhs in taxes and then buy a car whose actual worth is Rs.12Lakhs. We are paying taxes to the tune of anywhere between 66.66% to 72% .Shockked:
We are been looted in broad day light by the government. |