[mjothi]

Yes. Agreed. All taxes are flying north. But, will that stop buyers? Do we have options? I don't think.

Btw, these VAT was suppose to reduce the price right? Is not the reason to introduce it???

[Sudan_NFS]

Originally Posted by srishiva

How many people will be affected by raise in car prices?

What percentage of central taxes paid by Karnataka comes back to the state? I dont think its a big issue if car prices go up.

Yes you are correct this tax increase is not going to affect many only the car buyers who have tight budget in buying the car should face this.If someone plans for High end variant then he might need to settle for Mid end variant due to tax increase.

I think there should be an association for all car owners in their particular state and they much ask the government the question we ask.
Since no body is questioning the government for tax increase for cars they will keep on increasing.

[vinaydas]

Originally Posted by sabynag

Reduce the temptation to consume. Say a firm NO to overpricing. All prices, including taxes will come down.

Remember one economic theory : High tax brings ZERO revenue if it results in NO SALE

how do you expect people to boycott buying stuff?
not possible.
it is the inability of the government to manage the treasury which led to the increase of taxes.
recently
the government had to buy power from other states and private players for huge sums of money.
we had literally 5 hours of power cuts in a city and rural areas suffered for over 14 hours.

My theory
if government has to spend for the people then they will find a way to charge the people they are helping.
they are not even sparing the poor and the middle class people.
the prices of cars upto 5 lacs have been increased due to this tax.

Do not tell me that people in other states spend money.
in fact the financial capital ie Bombay has lower taxes compared to us.
it is just the fact that the government is corrupt.

[Live To Jive]

There was a time when people from Karnataka & Maharashtra used to buy cars in Goa because they were cheaper. Then for a while it was cheaper in Karnataka. I know a couple of guys who picked up and registered their OHC's in Karwar because it was cheaper than Goa. Looks like it's gone back to the old days again.

[worldcrawler]

Must be a "Dikhao" attitude. While being allies people have seen exotic cars owned by the people in hot seats!

"Every dog has it's day " - They were probably saying at that time after looking at all these.

And it's the time to leave the competition behind

You know what I am saying and the context what I tried to depict

[arin_12]

They have collected less tax last year. As per their calculation Stamp duty and registration fees have been decreased to 25%.
So they wanted to collect the rest of the tax amount by increasing taxation/vat/service etc...

[maveric20987]

This state is going to the dogs. I got delivery of my New Swift VDi yesterday. I booked it in December 2009 when the price on road was 5,86,000. Then it was hiked to 5,99,000 in January (which i ended up paying)

Then after the union budget it was increased to 6,09,000. Now I guess its atleast 5k more.

Therefor the total hike in 3 months - Rs. 30,000!!!!!!!!!!!!

I wonder where all this income to the Govt. goes!! The roads are pathetic, traffic horrible and taxes getting higher each day!

Damn!

[mjothi]

Originally Posted by maveric20987

I wonder where all this income to the Govt. goes!! The roads are pathetic, traffic horrible and taxes getting higher each day!

Goes to the following

1. beautification of the ministers bungalow
2. expense for the meetings to talk everything and decide nothing
3. inauguration, functions and banners etc expense.
4. official and unofficial allowance for visiting / stopping proceedings in assembly
etc etc...

[arun1100]

Originally Posted by mjothi

Goes to the following

1. beautification of the ministers bungalow
2. expense for the meetings to talk everything and decide nothing
3. inauguration, functions and banners etc expense.
4. official and unofficial allowance for visiting / stopping proceedings in assembly
etc etc...

+

5. Buying luxurious CARS!!

[sbraj]

Official version of expenditure. Source DH.

[Spitfire]

Higher taxation is bad doesnt do well to the economy.

But I think if this reduces the demand for cars in Karnataka rest assured of a lobby by car companies to change it.

Problem is people will still spend.

[tj123]

KARNATAKA is one of the highly corrupt states in the country. Taxes rates are the highest, now even higher. The worst possible type of roads & infrastructure.

To top it all government is good for nothing all they are doing is increasing the taxes but no one is looking at the wasteful expenditures.

[sabynag]

KA govt steadily increased taxes on various types of consumption (eg, car, property etc.) budgets after budgets. Now if you plot the demand for these commodities year after year, do you see any negative trend caused by higher tax ? If demand keeps increasing with higher and higher taxes, then possibly govt is still under-taxing the consumers - meaning the consumers won't mind paying more. What KA govt is doing makes pure business sense. Look at property - its demand fell during slowdown and the govt immediately reduced stamp duties to boost the demand. The central govt reduced various taxes and excise duties to control the fall of demand during slowdown. Tax rate is never an ACTION, it is always a REACTION.

We can write pages after pages - nothing will happen. No govt will ever make any decision based on what's happening in online social network - they will look for hard data and that data suggest that people in BLR are spending money as if there is no tomorrow.

Govt have no interest in the TAX RATE, they are interested in maximizing TAX REVENUE.

TAX REVENUE = TAX RATE x TOTAL VALUE OF TRANSACTIONS

TOTAL VALUE OF TRANSACTIONS depends on NUMBER OF TRANSACTIONS.

Economic theory suggests that TAX RATE and NUMBER OF TRANSACTIONS are somewhat inversely correlated, but for Bangalore this trend is still not emerging. Instead, both are increasing and that is encouraging every KA govt to increase the tax further till the euphoria persists.

TAX RATE is controlled by govt while NUMBER OF TRANSACTIONS are controlled by the victims (consumers). Govt is playing its card very well - are we playing our cards effectively ?

Look at your spending (say, your credit card bill). Try to answer to yourself - how many spends were based on NEEDS and how many were based on WANTS. You will be surprised !! Did you need to see that movie or you just wanted to see it ? Did you need that spa treatment or just wanted it ? Did you need a Honda Civic or wanted it ?

If all of us can defer our WANTS by just one year, we can bring down all prices - not only taxes but ALL PRICES - property rates per sq. ft, asking OTR price for cars, multiplex tickets, garments, everything. In my life, most of the best deals I got when I was walking out of the shop. The principle is simple - if I need something, I will not look at the price (say, medicine, essential food etc.); but if I want something, then I will buy it only when the price is right.

Next time you go shopping, ask yourself - do I NEED it or do I WANT it ? The change is in our hand - all it takes is a little bit of control over our temptations for instant gratification.

[condor]

tj123 : KARNATAKA is one of the highly corrupt states in the country. ... The worst possible type of roads & infrastructure.

To top it all government is good for nothing all they are doing is increasing the taxes but no one is looking at the wasteful expenditures.

@TJ123, So every other state has the lower taxes and the best roads ? With great governments & money spent wisely ? Places that make education compulsory upto graduation, etc etc ? Pls do share your findings so we can all move to such states. I'm sure many of us in BLR would love such other states.


Btw, this budget makes GTO's earlier thread look so much true - Hold on to your car even after 5 years. The longer you use it, the more you gain by lower TCI.

[harshavardhan]

Wrong. Petrol and diesel still come under the Karnataka sales tax act. Prices of these fuels will not be affected by change in VAT slabs.

-Harshavardhan

Originally Posted by arunkumars

As if the TAX and VAT weren't the highest in INDIA we have an increase on the same now .

What next????????
Start charging VAT on fuel at fuel stations as well