India Bashing

[Returning_Indian]

Taxes in India are incredibly high. For buying a car below is the breakdown:

Car cost - 15lakhs
GST -7lakhs approx
Total 22 lakhs
Income tax to make 22 lakhs (30%) - 7lakhs
Total tax paid on initial cost: 100% = 14lakhs

Below are taxes as running costs every year: 75k every year to govt. Not to mention taxes on tires, spares, repairs, servicing etc.
Tax on insurance: approx 20% of 20k = 4k
Tolls approx - 5k
100% tax on petrol- approx 15k km with average of 12kmpl = 63k

The most amazing part is how low the insurance premiums are in spite of all "interesting" driving - same would cost at least 10 times more for perfect drivers in the US. I guess most people settle them off the books in India and don't make a claim at all.

They have gone up substantially. It used to be around 10k 10yrs back. People are making lot of claims now but these premiums are regulated by IRDA and insurance companies cannot increase without their permission. It's cheaper because cost to fix the damage overall is very low in India compared to US. I got my entire car redone with painting etc with many parts replaced for 90k, paid partially by insurance. For reference just one side mirror which was damaged in US for a normal car costed me $300.
Recently damaged the AC pipe which lead to leakage. The entire cost of repair was 700 rupees and then around 1500 for AC gas refilling. This would easily be $400-500 in US or maybe higher. I don't think we can compare two countries. Labor costs are just too high in US.

[wd40]

Taxes in India are incredibly high. For buying a car below is the breakdown:

Car cost - 15lakhs
GST -7lakhs approx
Total 22 lakhs
Income tax to make 22 lakhs (30%) - 7lakhs
Total tax paid on initial cost: 100% = 14lakhs

Below are taxes as running costs every year: 75k every year to govt. Not to mention taxes on tires, spares, repairs, servicing etc.
Tax on insurance: approx 20% of 20k = 4k
Tolls approx - 5k
100% tax on petrol- approx 15k km with average of 12kmpl = 63k

The most amazing part is how low the insurance premiums are in spite of all "interesting" driving - same would cost at least 10 times more for perfect drivers in the US. I guess most people settle them off the books in India and don't make a claim at all.

They have gone up substantially. It used to be around 10k 10yrs back. People are making lot of claims now but these premiums are regulated by IRDA and insurance companies cannot increase without their permission. It's cheaper because cost to fix the damage overall is very low in India compared to US. I got my entire car redone with painting etc with many parts replaced for 90k, paid partially by insurance. For reference just one side mirror which was damaged in US for a normal car costed me $300.
Recently damaged the AC pipe which lead to leakage. The entire cost of repair was 700 rupees and then around 1500 for AC gas refilling. This would easily be $400-500 in US or maybe higher. I don't think we can compare two countries. Labor costs are just too high in US.

Our 2014 Alto has cheap 3rd party insurance of Rs 2,632. The IDV of the car is 83k. Not sure how the calculate it. Used car prices have gone up in India now due to the BS6/7 emission stds, the 10 year old Alto costs about 2.5L, that is like very negligible depreciation.

My philosophy in life has been dont buy things that are so expensive and precious that you then become its slave. Imagine buying a 20L car, you will then worry about it getting scratched, lament about its high insurance premium and then swear at the govt. All that is not worth it, stick to minimalism, whether it is a car or phone. My current phone is Poco, costs about 12k. Imagine carrying around a 1.5L rupees iphone and then worrying about it getting lost or stolen.

[SAPPORO]

Taxes in India are incredibly high. For buying a car below is the breakdown:

Car cost - 15lakhs
GST -7lakhs approx
Total 22 lakhs
Income tax to make 22 lakhs (30%) - 7lakhs
Total tax paid on initial cost: 100% = 14lakhs

Below are taxes as running costs every year: 75k every year to govt. Not to mention taxes on tires, spares, repairs, servicing etc.
Tax on insurance: approx 20% of 20k = 4k
Tolls approx - 5k
100% tax on petrol- approx 15k km with average of 12kmpl = 63k

The most amazing part is how low the insurance premiums are in spite of all "interesting" driving - same would cost at least 10 times more for perfect drivers in the US. I guess most people settle them off the books in India and don't make a claim at all.

They have gone up substantially. It used to be around 10k 10yrs back. People are making lot of claims now but these premiums are regulated by IRDA and insurance companies cannot increase without their permission. It's cheaper because cost to fix the damage overall is very low in India compared to US. I got my entire car redone with painting etc with many parts replaced for 90k, paid partially by insurance. For reference just one side mirror which was damaged in US for a normal car costed me $300.
Recently damaged the AC pipe which lead to leakage. The entire cost of repair was 700 rupees and then around 1500 for AC gas refilling. This would easily be $400-500 in US or maybe higher. I don't think we can compare two countries. Labor costs are just too high in US.

My DD wrecked the passenger side mirror, and I bought a OEM replacement part for $45 and had a handyman replace it for $15 labor. I replaced the driver side mirror as well for a consistent look for the same costs. Making the insurance claim would have increased the premiums more. The liability part is the killer in the insurance premium which is mandatory and does not depend on the value of the car.

[Returning_Indian]

Another tax terrorism. Just purchased a glucometer. It also faces 18% tax. India is diabetes capital of the world and government is making money off of this misery. Diabetes medication also attracts taxation. So sicker the people, richer the government. Bigger their houses and palaces. This is just plain absurd.

[r2somewhere]

Hasnt GST been around for years? Why are Indians only complaining only now?

[wd40]

Hasnt GST been around for years? Why are Indians only complaining only now?

The GST rates get tweaked every year.

[wd40]

Another tax terrorism. Just purchased a glucometer. It also faces 18% tax. India is diabetes capital of the world and government is making money off of this misery. Diabetes medication also attracts taxation. So sicker the people, richer the government. Bigger their houses and palaces. This is just plain absurd.

Fretting over taxes is useless. India is a poor country and majority of population is poor. Poor people don't get diabetes, it is a lifestyle disease.

Also, I beleive even if you make taxes 0, the economics works such that the marginal benefit will not go to the consumer, the stuff will just become more expensive based on the purchasing power of the people. So the manufacturer will just up the cost and then instead of blasting the govt we will blast capitalism.

Imagine the amount of cars on the roads like Bangalore, everyone has their own car, it occupies so much space on the road and it is least efficient means of transport. Now imagine govt makes taxes 0 on cars, what happens. People will buy up cars like vegetable and then there will be no space to park them or drive them. So be happy that the taxes are high so only upper middle class people like on this forum can afford the cars

Singapore follows this method, there is a 10 year COE(certificate of entitlement) which costs about 80k USD and a BMW costs about 200k USD. So most people use the public transport.

[Returning_Indian]

Another tax terrorism. Just purchased a glucometer. It also faces 18% tax. India is diabetes capital of the world and government is making money off of this misery. Diabetes medication also attracts taxation. So sicker the people, richer the government. Bigger their houses and palaces. This is just plain absurd.

Fretting over taxes is useless. India is a poor country and majority of population is poor. Poor people don't get diabetes, it is a lifestyle disease.

Also, I beleive even if you make taxes 0, the economics works such that the marginal benefit will not go to the consumer, the stuff will just become more expensive based on the purchasing power of the people. So the manufacturer will just up the cost and then instead of blasting the govt we will blast capitalism.

Imagine the amount of cars on the roads like Bangalore, everyone has their own car, it occupies so much space on the road and it is least efficient means of transport. Now imagine govt makes taxes 0 on cars, what happens. People will buy up cars like vegetable and then there will be no space to park them or drive them. So be happy that the taxes are high so only upper middle class people like on this forum can afford the cars

Singapore follows this method, there is a 10 year COE(certificate of entitlement) which costs about 80k USD and a BMW costs about 200k USD. So most people use the public transport.

I would rather corporation get richer than govt. Govt is full of corruption and undeserving people build palaces. Corporations compete and also innovate. Govt can bring in regulations to avoid any gouging. Like it does for insurance companies. Govt (politicians and bureaucrats) cannot be trusted with the money, I think changes in 91 proved that.

In any case, applying such high amount of taxes on medications is not good. People's health should not be seen as a revenue earners for govt. Especially when 30% of the country is diabetic and overall population is headed for a disaster.

Singapore cannot be a role model for the world. It is extremely small country and very very wealthy due to its location. I don't know the weather there but in India you cannot travel in public transportation 9months out of the year. You will start sweating as soon as you step out of house and by the time you reach office, you will need to take shower and change. Amount of dust another factor. And the quality of people in public transportation is plain disgusting. Who knows when they take shower or what kind of hygiene practices they have. I am afraid to even touch anything in public transport systems (worldwide).

[Returning_Indian]

Hasnt GST been around for years? Why are Indians only complaining only now?

Earlier not everything was under the gambit of GST. Lot of things were exempt. Moreover, it's also about awareness. Social media is making people aware about taxes govt is collecting and there are no returns or facilities. Earlier these taxes were very miniscule part of your income/spend. Now you pay more than 30% in income tax, 20% on GST, bribes to get work done, tax on petrol, stamp duty, you name it. It appears you pay 50-70% of your income to govt and get nothing in return. And people are now staring to realise it as you see it printed on your bills and also on social media.

[nodegree]

My DD wrecked the passenger side mirror, and I bought a OEM replacement part for $45 and had a handyman replace it for $15 labor. I replaced the driver side mirror as well for a consistent look for the same costs. Making the insurance claim would have increased the premiums more. The liability part is the killer in the insurance premium which is mandatory and does not depend on the value of the car.

Not to nit pick but this is an exception. Never found any car mechanic that would charge only $15 for anything. Heck even a basic car wash is $30-$40 in my neck of the woods. My experience with replacing mirrors is more inline with Returning_Indian's estimate of $300-$400.