Economics of India is broken

A Fortuner car from Toyota costs a consumer 48 Lakhs on road. Out of this toyota company makes 40 thousand, dealer makes 1 lakh, Govt makes 18 lakhs. Rest is the cost of vehicle.

Essentially the consumer pays 48 lakhs but gets product worth 28 lakhs.

This is why most foreign companies come to India sell products for a while and check out. 5% stay and make here.

Somehow this 5% must increase to 25% for us to have more employment and keep wheels of economy running.

What can be done to lower taxes on such products? more  

View all 20 comments Below 20 comments
Taxes are absurd in India and it is not a discovery. There must be a cap on all taxes. Any tax rate over 30% is questionable. If any product is considered harmful (Liquor/tobacco?), it should not be sold, rather than taxing it with obnoxious rates (Why should the government rake in blood money?). With high prices, the number of prospective buyers for Toyota Fortuner tends to be very low. The car manufactuer will not set up manuafacgturing facilities for small number of product sales, but prefer to import it as finished cars or in SKD (Semiknockdown)/CKD (complete knockdown) condition kits where the key components are never made in India. Do we all know that most of the steel used in motor vehicles is generally imported since most steel plants in india are not configured to make automobile grade steel? Before going attamanirbhar, reality has to dawn that econmonies of scale is a reality. Secondly, India has to increase competitiveness. We need a better supply chain in place and better ideas. more  
Make in INdia instead of importing finished product in India more  
Knowingly well about costing,why buy such luxurious vehicle? more  
How does the government earn so heavily Rs.18 lacs on the sale of a single vehicle! Would the car manufacturers and consumers, allow this?Manufacturers, after all extracted lowering of duties, GST, on vehicle sales over 2 years back furthering their profits. In fact only aspect that is allowed by all is their products making it out with the environment. Government, to be fair has converted the entire mass transit system, i.e. bus fleet to CNG and metro train runs on electricity. more  
Its misrepresentation, Please explain how did you arrive at Rs.18Lakhs going to the Government. more  
Post a Comment

Related Posts

    • Why impose GST on hospital rooms

      At a time when hospitalisations are due to rise as people cope with long covid and other covid induced ailments and the pandemic continues, what sense does it make for the Government to tax hospita...

      By Karuna Dhingra
      /
    • GST council - such pathetic outcomes

      Look at what the lame GST council has done. The buggers have increased GST rates on led lamps, pencil sharpners, spoons, forks, knives, printing ink and a ton of other items when we specifically in...

      By Rajesh Suri
      /
    • Book Ikea India management for Covid violations

      Look in attached friends how crowding is happening in Ikea store in Bangalore. The management of ikea needs to be charged for causing covid norms violations by giving entry to so many pe...

      By Ashima Gupta
      /
    • CORRUPTION CASE AGAINST VERY SAME DRUG CONTROLLERS ARRESTED BY CBI - SEE ATTACHMENT - HISTORIC

      Dr.S.Eswara Reddy arrested by CBI. Same person along with another Joint Drugs Controller, Dr. P.B.N. Prasad & Asst Drugs Controller, Somnath Basu Organised a "Fake Joint Investigation" along wi...

      By Umeshchandra Barkur
      /
    • Drug inspectors most corrupt

      पटना में ड्रग इंस्पेक्टर जितेंद्र कुमार के यहाँ मिला कुबेर का खजाना, इतना कैश कि घंटों से गिना नहीं जा पाया. इसके अलावा कई घर-जमीन, ढेर सारे गहने और लग्ज़री गाड़ियाँ भी बरामद हुईं. आय से...

      By Ajay Kumar
      /
    • The COVID re-infection survey

      Several of you have been writing about re-infection risk of COVID. Some have experienced it twice already since the pandemic began in March 2020 and some others have been infected twice just with O...

      By LocalCircles Manager
      /
    • Next President of India - Murmu vs Sinha

      BJP has picked Daupradi Murmu as their candidate for next President and Opposition has picked Yashwant Sinha (once hardcore BJP) as theirs. Murmu being a lady and representing tribal com...

      By Ruchika L Maheshwari
      /
    • FDA CDSCO IN NEXUS WITH CIPLA LIMITED. SERIOUS ADRS CAUSING DEATH HUSHED UP

      Both the Joint Controllers in CDSCO as well as ADC(I) are involved in a major Scam to protect Cipla Limited in their drug causing serious Adverse Drug Reactions leading to death of my wife. Case is...

      By Umeshchandra Barkur
      /
    • Corruption in Drug Approval

      News report today says the CBI raided Drug Controller Office of central government because Biocon gave bribe to the Joint Drug Controller for drug approval. Ok so my question is we have ...

      By Kapil Rao
      /
    • PM's visit to Bangalore - educational institutions closed

      Holiday has been declared for educational institutions in Bangalore along the route that the Prime Minister is passing through. At a time when the schools and colleges have just restarted after a...

      By Padmanabhan G
      /
    • GST rates should be reduced not increased

      Thank you LocalCircles for putting it across so crisply that increasing GST rates at this time is not acceptable.

      By Shailesh Deshmukh
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)