[Rachit.K.Dogra]

Originally Posted by Jangra

So basically only 57% of the total amount was received by SKODA!

Thank you so much for this Math. I never got down to doing the math, but in general, I agree. In my mind, the perception has built, that car users are the favorite subjects to tax. New car buyers are even more likeable subjects to tax.

If we do the same math you did and compare it with same prices, but taxes around 7-8 years back. To make it worse, if we add just taxes on fuel for lets say an year of driving, the picture is so much worse as compared to 7-8 years back.

Personally, I am postponing my new car purchase and one very big driving factor, is I feel like a scape goat when buying a new car.

If there were improvements in public transport systems in these last 7-8 years, where the government could justify that ideally car ownership should be a more perceived luxurious spent, and not necessarily needed, and hence more taxed, I would still consider it justifiable. But I don't see that happening anywhere.


Rachit

[Naetik30]

Long time ago, taxation system changed from being a means for providing infrastructure and helping poor to a means for government babus to have a luxurious comfortable life (along with ensuring everyone else who is not a babu has the worst quality of life).

Of the people, by the people and for the babus.

[EV NXT]

The Chinese have a rather unique way of making you forget something that gives you painful thoughts - give you something more painful to think about.

So taking a leaf from this ancient piece of Chinese wisdom, to forget about how much you paid by way of taxes for the Kodiaq, just note that the hard earned money you paid towards various taxes is going towards breaking down parliaments and building new ones, building statues in key locations and a few fully loaded Boeings for personal use of VIP’s.

At an OTR price of Rs.50,000 crores.

Suddenly the Kodiaq appears reasonable.The Chinese are smart.

[gjnnbagal]

Originally Posted by Jangra

Yes, you heard that right! Well, technically.
Let me explain.

Are you forgetting something? The Fuel tax collected by the government! We are in India where fuel tax was one of the highest (May2020)
Link

Recent (Feb2021) Fuel tax rate is mind boggling

[Huzi]

To be fair to Op, most of us will empathise with you, including our Mods.

In my view, just focus on “kitne maaze de rahi hai” wali feeling..

[Tokengrip]

Originally Posted by Vid6639

So buy that MG ZS EV over the Tiguan, Compass or Kodiaq and be happy you paid the lowest tax to the govt.

One of the things I appreciated most when buying the ZS EV was this. The fact that you don't pay the government makes it so much sweeter.

[aniketi]

Originally Posted by Jangra

Yes, you heard that right! Well, technically.
Let me explain.

You are thinking too much and doing some unnecessary calculations. Taxes will be there, always. Please don't do any calculations on how much tax you are paying while you put petrol/diesel in your car, you will lose your sleep. Just enjoy your great ride.

Just think other way. You are lucky enough that you can afford this much money, that too all white as you are a salaried person. You are part of blessed people who can earn and spend this much money. So just chill.

Just keep 2 rules in mind -

1 Money saved is money earned. So try to save money on unnecessary expenses if any.
2 Earn more, spend more, simple.

[venus1975]

Slightly Off topic:

Another annoyance for me is to see the ex-showroom price of a Car kept a little over 10L. In Tamil Nadu, Road Tax Charges (Personal Registration) are:
* Cars under Rs. 10.0 Lakh: 10%
* Cars above Rs. 10.0 Lakh: 15%

Take for example, the ex showroom price of Maruti S-cross PE in Chennai. It is INR 10,05,000.

Why would the car manufacturer want us to pay 5% more tax (which will translate to INR 50K+) by pricing a car at 10.05L instead of keeping it at, say 9.99L. Can't they do something different to keep the ex showroom price under 10L, so the end user will get a benefit of more than 50K?

[Marauder]

Originally Posted by aniketi

You are thinking too much and doing some unnecessary calculations. Taxes will be there, always. Please don't do any calculations on how much tax you are paying while you put petrol/diesel in your car, you will lose your sleep. Just enjoy your great ride.

Just think other way. You are lucky enough that you can afford this much money, that too all white as you are a salaried person. You are part of blessed people who can earn and spend this much money. So just chill.

Just keep 2 rules in mind -

1 Money saved is money earned. So try to save money on unnecessary expenses if any.
2 Earn more, spend more, simple.

Sorry to say but this is precisely why Governments are getting away by fleecing the middle-class and the salaried workforce in the name of taxation. The point that this post highlights is that we are paying through the nose to drive our cars but the infrastructure provided in the name of all the taxes collected is pathetic to say the least.

IMO, 'at least we are better off than the poorest class of the country' is not a valid excuse for the current situation of the auto-industry.

[real_koolkrish]

Originally Posted by Turbohead

What else did you expect when we car buyers are at the top 10% of the population?

If you really, really care about how your tax money is being used, move abroad to a car friendly nation.

What are the best countries to be a Car Enthusiast ?

[neerajdan]

Excellent analysis.!

Can you also do it in case it was a business/partnership firm side by side? Just for academic comparison?

Thanks

[shobhit.shri]

There are two other sides to high taxation:

1. Our auto industry is not growing at all. Many manufacturers are struggling to survive.
2. So many road accidents and deaths. When cars are already so expensive, both the buyer and manufacturers are saving money on safety. Not that I condone it, but we also can't deny that it is happening.

[Jangra]

Originally Posted by d3mon

You can't include income tax in this calculation.

You pay income tax before you receive your salary, or when you turn a profit (if you're a businessman).

Regardless of whether you choose to spend this remaining money on a car or not, that income tax is never coming back. So it makes no sense to add it to the cost of a car.

Another way to look at it is, if your prime objective in life is to own a 65 lacs car, you need to earn a total Gross salary of one crore over a period of time to accomplish that.

[manishk123]

It would be very interesting to see how other countries charge tax on cars.

Cars, well at least smaller ones, should not be considered a luxury item anymore. Especially in an overcrowded country like India where the public transport system is bursting at the seams. Its not humanly possible for many to use public transport in this condition. And the poor folk who do use it, obviously have no other means.

A few months back I had come across an interesting discussion by Dr. Subramanian Swamy stating why personal income tax should be done away with, as it costs the government more in terms of infrastructure to collect the tax, than the tax actually collected. We should only have transaction based taxes. Will make life simpler for everyone.

[aniketi]

Originally Posted by Marauder

Sorry to say but this is precisely why Governments are getting away by fleecing the middle-class and the salaried workforce in the name of taxation. The point that this post highlights is that we are paying through the nose to drive our cars but the infrastructure provided in the name of all the taxes collected is pathetic to say the least.

IMO, 'at least we are better off than the poorest class of the country' is not a valid excuse for the current situation of the auto-industry.

Is there any other option? Can we stop subsidy? Can we stop reservation? Can we stop free things to poor people? Then how government is going to get money from? Every other person avoiding taxes, try to do payments in cash to avoid GST, right? Why blame only government? Infrastructure is pathetic? I don't think so .. not great but not pathetic for sure.