In an interview to Bloomberg this week, a top official of Toyota’s local unit said taxes in India were too high, making car purchases expensive for buyers and impacting business.
Finance ministry says Maharashtra, Karnataka, UP, Gujarat, Tamil Nadu reported largest shortfall in GST collections. Three BJP-ruled states agreed to borrow to meet the shortfall.
The monthly outlook report for August says the uncertainty on account of the pandemic still persists and only a vaccine will restart discretionary spending.
The decision has been taken given as using technological innovations for planning, scheduling & forecasting is known to be economical, efficient and effective, an official memo said.
Modi govt says revenues are under strain and expenditure is increasing due to the pandemic and needs of national security to counter states' demand that it should borrow.
The process, which started in early 2017, took nearly 2 years to reach the 10-crore mark. But this more than doubled over the last 17 months to touch 25 crore now.
I-T dept will analyse expenditure patterns through collected data to look for evasion. But honest taxpayers won’t be impacted, stresses the government.
Finance ministry said that in June, a large number of people paid taxes pertaining to February, March & April on account of the relief provided due to Covid-19.
Nepotism seems to have been a concern in Uttaramerur elections. That's why the drawing of ballots was done by a child and executives' relatives were banned from being elected.
New bill aims to fix key issues with IBC 2016, including delays & patchy implementation, and protect creditors, with window for genuine promoters to retain control of their companies.
Billed as the military’s own version of Raisina Dialogue, the event will spotlight on tech-driven warfighting, lessons from Operation Sindoor and release of three new doctrines.
Now that both IAF and PAF have made formal claims of having shot down the other’s aircraft in the 87-hour war in May, we can ask a larger question: do such numbers really matter?
This is a simplistic view of the problem. But sales is a factor of what people want for their usage and maybe style, what and how much they are willing to spend and how much the manufacturer is willing to package within that cost. Of course mileage is a big feel good factor in India. GST while there is not a big factor for sales rise or fall. When times are uncertain car sales will fall and people look to cheaper cars. Cheaper doesn’t mean bad cars. Some of the big brand models have been total failures too. It al boils down to how customers perceive value for money.
Toyota in India has done poor promotionand deals and their service is pathetic and expensive. Sales is bad in general as the economy has shrunk due to COVID19, and not due to GST. Toyota seems to fared worse and it is due to thier own misgivings.
Indian political class has a socialist mindset.
Because there are so many poor people and many working as self employed or underemployed.
So too much profits are bad. Businesses must exist to serve society and country!
lol ..trust it on India to tell companies how to go about their business !! As it is we have one of the most unreasonable and complicated GST tax regimes in the world !!
Toyota must ask itself one question, why is it that both Maruti Suzuki and Hyundai are successful in Bharat? Why do they command such huge market share?
Lol ..that’s an easy one ..cause they have some of the lowest quality cars and hence their cheaper price tags. But you will forced to run to their service centres cause of issues all the time. And their safety features are almost non-existent. But Indians generally don’t care about all this as long as things come cheap !!
my family has had a maruti alto for over 20 years. does not work like a charm but will say that it will do better than a 20 year old mg hector
The official has a point when he mentions MG, Kia and Jeep. In fact, Renault has also increased production manifold . Just for pure political reasons, a statement from a single car maker is used. And this car company is slowly losing market share too. When was the last time anyone heard of a new launch by Toyota? Its surviving based off of Innova. Just like the Tatas stopped launching new models and suffered ultimately, Toyota is staring at the same fate in the Indian market. If the atmosphere was really so bad with regard to high taxes, three new companies wouldn’t have set up shop .
lol ..are you kidding me ..all the three Car makers you mentioned are known for making very low quality cars that break down at the first sign of trouble. Toyota is the best car company in the world that has perfected the art of making high quality cars at a very affordable price tag all over the world. And besides every country I have lived in levies a gst of 5-11% not 28% making what’s affordable in most countries ( even the developed countries) but making it unaffordable in ours cause if such high tax rates. This is not what ease of doing business means by any stretch of the imagination !!
Political reasons !
Maybe you want to harass them to contribute to your favourite political party.
Auto Industry is right in saying taxes are too much! In USA most states have a tax of around 5-7% and in Canada it is around 15%. BTW, Canada is considered a high tax country becuase of their socialist structure. If Indians are paying 28% then obviously it is way too high. No wonder we have apoor economy that is growing slowly. We still have not come out of a high tax mind set. One of the problems may be because Indians do not pay taxes and the government has to have revenue to run its affairs, so this is how government tries to get even with general population who do not want to pay taxes. If most people in India would pay taxes, may be then govet. might reduce taxes. In any case, India continues on a snail pace to improve its economy and it may take few more decades to improve but truly does anyone really cares! It is quite disappointing in Modi’s government that considers itself business friendly and wants India to be a 5 Trillion dollar economy by 2024.
In India just 2%. Most are salaried people. And many salried fall in lowest tax slab so they are also out of income tax.
Hence high indirect taxes in India. That is the truth.
I see this high GST s a good way to tax people who buy luxury products if they are not paying incone tax. However it can be unfair to those tax payers who have already paid high income taxes.
Seriously ?? – what kind of English is this. What do you mean by “crib”. Have you ever had a dictionary or even a semblance of English education. Words like “crib’ & “cribbing” DO NOT EXIST as used in the Indian lingo.
Every cars except EVs are taxed 28%. On top of that you pay cess and other craps.
Yes it is double taxation considering low proportion of income tax payers in our country.
I wish there was a discount in indirect taxes for income tax payers as per slab at least for large purchases. Rich agriculturists and many businessmen and self employed do buy big cars but they don’t suffer the whammy of double taxation.
Ram you absolutely said ? right about Indian Tax system. ????
Ram you absolutely said
100 % right about Indian Tax system
Actual tax is more than 100%.
For example 8.4L is the cost of Honda city. 6L is the tax( 2.2L GST+1.43L Cess+2.3L RoadTax). So tax is ~70%
Salaried class pay 30% income tax for total price of 14.4L. So another 4.3L as income tax.
So total tax is 10.3L to purchase 8.4L car.
This is a simplistic view of the problem. But sales is a factor of what people want for their usage and maybe style, what and how much they are willing to spend and how much the manufacturer is willing to package within that cost. Of course mileage is a big feel good factor in India. GST while there is not a big factor for sales rise or fall. When times are uncertain car sales will fall and people look to cheaper cars. Cheaper doesn’t mean bad cars. Some of the big brand models have been total failures too. It al boils down to how customers perceive value for money.
Toyota in India has done poor promotionand deals and their service is pathetic and expensive. Sales is bad in general as the economy has shrunk due to COVID19, and not due to GST. Toyota seems to fared worse and it is due to thier own misgivings.
Indian political class has a socialist mindset.
Because there are so many poor people and many working as self employed or underemployed.
So too much profits are bad. Businesses must exist to serve society and country!
Government conviently forgets to mention cess charged which makes total tax above 45% in many cars.
lol ..trust it on India to tell companies how to go about their business !! As it is we have one of the most unreasonable and complicated GST tax regimes in the world !!
Toyota must ask itself one question, why is it that both Maruti Suzuki and Hyundai are successful in Bharat? Why do they command such huge market share?
Lol ..that’s an easy one ..cause they have some of the lowest quality cars and hence their cheaper price tags. But you will forced to run to their service centres cause of issues all the time. And their safety features are almost non-existent. But Indians generally don’t care about all this as long as things come cheap !!
my family has had a maruti alto for over 20 years. does not work like a charm but will say that it will do better than a 20 year old mg hector
The official has a point when he mentions MG, Kia and Jeep. In fact, Renault has also increased production manifold . Just for pure political reasons, a statement from a single car maker is used. And this car company is slowly losing market share too. When was the last time anyone heard of a new launch by Toyota? Its surviving based off of Innova. Just like the Tatas stopped launching new models and suffered ultimately, Toyota is staring at the same fate in the Indian market. If the atmosphere was really so bad with regard to high taxes, three new companies wouldn’t have set up shop .
lol ..are you kidding me ..all the three Car makers you mentioned are known for making very low quality cars that break down at the first sign of trouble. Toyota is the best car company in the world that has perfected the art of making high quality cars at a very affordable price tag all over the world. And besides every country I have lived in levies a gst of 5-11% not 28% making what’s affordable in most countries ( even the developed countries) but making it unaffordable in ours cause if such high tax rates. This is not what ease of doing business means by any stretch of the imagination !!
Political reasons !
Maybe you want to harass them to contribute to your favourite political party.
Auto Industry is right in saying taxes are too much! In USA most states have a tax of around 5-7% and in Canada it is around 15%. BTW, Canada is considered a high tax country becuase of their socialist structure. If Indians are paying 28% then obviously it is way too high. No wonder we have apoor economy that is growing slowly. We still have not come out of a high tax mind set. One of the problems may be because Indians do not pay taxes and the government has to have revenue to run its affairs, so this is how government tries to get even with general population who do not want to pay taxes. If most people in India would pay taxes, may be then govet. might reduce taxes. In any case, India continues on a snail pace to improve its economy and it may take few more decades to improve but truly does anyone really cares! It is quite disappointing in Modi’s government that considers itself business friendly and wants India to be a 5 Trillion dollar economy by 2024.
Cant compare USA and India
In USA 50% of population pays income tax
In India just 2%. Most are salaried people. And many salried fall in lowest tax slab so they are also out of income tax.
Hence high indirect taxes in India. That is the truth.
I see this high GST s a good way to tax people who buy luxury products if they are not paying incone tax. However it can be unfair to those tax payers who have already paid high income taxes.
Seriously ?? – what kind of English is this. What do you mean by “crib”. Have you ever had a dictionary or even a semblance of English education. Words like “crib’ & “cribbing” DO NOT EXIST as used in the Indian lingo.
Check a standard dictionary. Please ??.
Not true. Why should GST be 28 percent for all cars.
So tax payers who work hard in life should be taxed at 30 percent income tax and also pay 28 percent to own a car?
Does the government even look at them when they retire from a job. But as long as they have a job, govt sucks their blood like a leech.
For Luxury cars, not small/mid size cars .
Every cars except EVs are taxed 28%. On top of that you pay cess and other craps.
Yes it is double taxation considering low proportion of income tax payers in our country.
I wish there was a discount in indirect taxes for income tax payers as per slab at least for large purchases. Rich agriculturists and many businessmen and self employed do buy big cars but they don’t suffer the whammy of double taxation.
Ram you absolutely said ? right about Indian Tax system. ????
Ram you absolutely said
100 % right about Indian Tax system