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Old 22nd April 2022, 17:21   #46
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

The government usually tries to levy tax on a specific channel that has a high transaction rate. For instance , our fuel. The government is interested in this channel only because of the volume of sales that happen everyday. Very effortlessly the price can be raised and exchequer can be filled in quickly by few thousands of crores/lakhs of crores perhaps.

Though EV seems a compelling option for the public ( so much that you start looking at how much fuel you are not buying / thereby not paying so much to the government - over enjoying the EV itself in perspective ) , tomorrow when there is a considerable shift in traffic to use of EV , government's focus would then fall on the EV channel as well. There will be newer rules/policies to tax EV users as well. At rates par with ICE vehicles today and there is no stopping.

For instance , look at Australia!

Eventual shift in vehicles from ICE to EV is going to help the govt to a large extent because once after there is considerable EV traffic plying on roads , the govt can choose to charge as much tax and not worry about imports on fuel that is needed today.

This is how the game works , You have to pay back to govt whether you like it or not.
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Old 22nd April 2022, 18:23   #47
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

Just forgot to add one point above. I am really glad and thankful that we have high taxes on cars. With so many taxes also our roads are full of cars and flooded. I can't even imagine if taxes are reduced drastically, how many more cars will come on our roads. It will be total mess on our roads. Now also on long weekends, public holidays we face hours of traffic jams on highways. It will be total disaster if few lakh more cars gets added.
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Old 22nd April 2022, 18:30   #48
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by aniketi View Post
Just forgot to add one point above. I am really glad and thankful that we have high taxes on cars.
If you are so happy paying high taxes with no return, pls pay on on our behalf too!
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Old 22nd April 2022, 18:42   #49
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by aniketi View Post
Just forgot to add one point above. I am really glad and thankful that we have high taxes on cars. With so many taxes also our roads are full of cars and flooded. I can't even imagine if taxes are reduced drastically, how many more cars will come on our roads. It will be total mess on our roads. Now also on long weekends, public holidays we face hours of traffic jams on highways. It will be total disaster if few lakh more cars gets added.
Taxing the rich as a concept is fundamental to running a country. The targeting mechanisms in the real world tend to be less than perfect. Most of the top 1% have loopholes to minimize their tax outflows. Discretionary spends on large ticket items like cars are one of the few reliable and visible indicators of formal wealth, enabling the government to impose taxes. Agree that taxes on cars are essential.

What ticks off the salaried class is that the others in the top 1% are able to use the loopholes (agri exemptions, inflated business expenses, etc.) to avoid (perfectly legal) the tax burden to a large extent.
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Old 22nd April 2022, 18:58   #50
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by aniketi View Post
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?
You see, India is a democratic and welfare state. Subsidies and reservation have been there since long and yet, section of people have remained marginalised. Governments used to run these welfare schemes before as well without putting a burden on the people of the country. If the only way of earning revenue is from taxing the fuel, then there is something very wrong with how the country is being run !!

No body is saying taxes are wrong. Everyone knows taxation is necessary but then to what extent, just as @Turbonator has said in his post before. It’s about time someone does something about the arbitrary taxes.

Quote:
Originally Posted by aniketi View Post
Just forgot to add one point above. I am really glad and thankful that we have high taxes on cars. With so many taxes also our roads are full of cars and flooded. I can't even imagine if taxes are reduced drastically, how many more cars will come on our roads. It will be total mess on our roads.
Simple solution is improving the public mass transportation system. You know why so many two wheelers and four wheelers are in the roads, it’s because of lack of proper mass transport which got amplified during the pandemic. But then simple solutions are not that simple I guess, we the people should be happier that the government is at least providing us fuel to run our vehicles, so what if we are taxed like crazy !!

Last edited by ABHI_1512 : 22nd April 2022 at 19:11.
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Old 22nd April 2022, 21:09   #51
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by Yeldo View Post
Higher taxes are necessary to reduce the effects of inequalities in income. They are a matter of policy for every major democracy, so as to ensure fewer disruptions in the society.
The point above is often missed out.

Just for context:
Quote:
The report highlighted that with an average wealth of Rs 66,280, bottom 50 per cent of the population owns almost nothing. Besides, this is just 6 per cent of the total wealth.
Source: https://m.timesofindia.com/business/...w/88149699.cms

61 lakhs means the average wealth of 92 Indian families from the bottom 50%.
(Wealth, not income)

Welfare is a necessity to maintain social harmony.
This implies a heavy tax burden on voluntary luxury purchases by the wealthy.

PS: In the light of the above, many who don't consider themselves wealthy, really are so in the Indian context.
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Old 22nd April 2022, 21:22   #52
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by finneyp View Post
If you are so happy paying high taxes with no return, pls pay on on our behalf too!
Who is saying I am not getting returns? India is changing, infra is getting developed, we have better and bigger highways now, we have many more operational airports now, we have better trains now, we have ample opportunities for jobs and businesses, we are more safe now as a country, etc. We have seen few countries reducing taxes, giving things for free and going bankrupt in few years. Thank God we are doing such silly things. People expect less or no tax but want everything which is not possible.

At least current government is trying to tax as many people as they can. Number of tax payers increasing substantially every year which is good thing. Problem is we had very bad systems before which can't be changed overnight, unfortunately. Same applies to tax structure. Hardly 5-7 % people pay income tax. So government has to impose indirect taxes everywhere. BTW, all good countries have heavy taxes, some or other way they get it from you to run the country.

Last edited by aniketi : 22nd April 2022 at 21:24.
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Old 23rd April 2022, 00:29   #53
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Old 23rd April 2022, 07:57   #54
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

My eye almost popped recently reading another thread about the purchase of a Toyota Hilux pickup at 40+ lacs. All over the world it is by and large a workmans vehicle.
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Old 23rd April 2022, 08:24   #55
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

For clarification, won't SKODA be earning more than the w/o tax price as they must be getting input GST credit?

Unfortunately, the consumer will get the full brunt of the tax impact.
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Old 23rd April 2022, 09:24   #56
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by prateekswarup View Post
For clarification, won't SKODA be earning more than the w/o tax price as they must be getting input GST credit?

Unfortunately, the consumer will get the full brunt of the tax impact.
They will get the input GST credit on the components they buy to make the car. That % will be lesser than the GST on the final car.

So yes they will get some tax credit for the components used but nothing from that 48% GST goes to them.

I could be wrong but that's how it works with businesses.
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Old 23rd April 2022, 09:45   #57
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by prateekswarup View Post
For clarification, won't SKODA be earning more than the w/o tax price as they must be getting input GST credit?
Skoda will be depositing GST every month based on the Tax rate applicable for the cars they ship to the dealer. This payment is calculated after claiming all inputs (majority 18% tax rated). As automobiles are termed as luxury (sin) goods, there is a surcharge on top of regular GST as you can note in the opening post. (14+14+20%) The surcharge of 20% - is not adjustable as far as I know. The other components 14 + 14 or 28 depending on the state to which goods are billed are fully adjustable against inputs.

All manufacturing companies, do not consider GST as part of the purchase costs as these are fully adjustable against output. If that would not be the case, prices would have been even higher
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Old 23rd April 2022, 10:11   #58
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

I remember showing the final bill on Thar Petrol manual to my Mother. Actual cost of the car is 9 lakhs Sixty thousand. Total amount I paid was 15.6 Lakhs out of which 67000 were for the Insurance. So 6 lakhs is what I paid as taxes to the Government.
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Old 23rd April 2022, 10:13   #59
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

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Originally Posted by aniketi View Post
I am really glad and thankful that we have high taxes on cars. With so many taxes also our roads are full of cars and flooded. I can't even imagine if taxes are reduced drastically, how many more cars will come on our roads. It will be total mess on our roads.
By advocating high taxes to avoid chaos and crowding on roads, you are advocating acceptance of poor infrastructure and services from the government. This also makes the pathetic infrastructure and traffic management look like a privilege meant for only few. Does not need to be that way. Our car ownerships have not reached that level yet where it has to be discouraged via higher taxes. I am of firm belief that chaos and infrastructure can be improved significantly from current levels to support many more cars on road without much increase in road tax. The authorities need to be held accountable and traffic be managed and organized. The chaos on our roads is not primarily because of higher vehicle density, it is because of poor planning, poor infrastructure and poor rule enforcement. South Korea, Japan and Netherlands prove that, their vehicle and population density is much higher than ours and still driving can be fun there.
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Old 23rd April 2022, 11:53   #60
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Default Re: Include my income tax & I paid 61 lakhs to buy a Skoda Kodiaq!

Eye opening analysis. While I was aware that there was high amount of taxes in every walk of life, the amount of tax we pay for an automobile due to pathetic public transport systems is really atrocious.

I used to hear that there are only two things certain in life: "Death" and "Taxes".
There now seems to be a third certain thing, "Death by Taxes".

I only take solace thinking that the taxes I pay are somewhere feeding some poor soul who cannot afford three square meals a day for their family. I know its like the Ostrich hiding its head in the sand, but nothing I can do about this. If you earn, pay taxes, if you don't earn, pay taxes.
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