Discussion in 'Random News' started by Desmond David, Jun 11, 2018.
Source: Donald Trump accuses India of charging 100% tariff, says trade might stop
He's an intelligent guy, will never stop the trade. Whatever he's saying is right from an American pov. From our pov the taxes/tariffs need to be lowered also.
For a noob in economics answer me these please:
What is meant by import duties? Does it mean India is charging twice for some products to American people?
I thought American products are costly here? Is the other way around more true?
Which motorcycles does India export to Umrica?
Higher import duty results in higher cost resulting in lower demand.
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Import duty is a tax collected on imports and some exports by a country's customs authorities. It is usually based on the imported good's value. Depending on the context, import duty may also be referred to as customs duty, tariff, import tax or import tariff.
India is not charging twice on American People but they charging twice on Indian people for buying American products(as import duty.For bikes it is 50% of the retail value) this gives unfair advantage of Indian companies becoz they can sell the product at lower MRP compared to American products. Bajaj motorcycles are exported to America but America don't charge import duty like India.
Import duty has been explained above. Take an example of Harley Davidson bikes, say the ex-showroom price of a bike is 1lac in the US, the import duty in India is 100% so the ex showroom price will be around 2.5-3(maybe more idk), the on road price will be 4-4.5(again depends on state taxes etc.) What Trump is saying is that say for Bajaj bikes exported to the US, they are not charging 100% import duty. I read around 20-40% somewhere again it might be model specific idk. But India is charging 100% which if you think from an Indian customer pov is way too much and from American pov it won't generate much sales so win win situation only for the government and loose loose for everyone else. Same goes for cars etc. Base model of Tesla model X is around 50 lacs ex showroom price, but its ex showroom price will be more than 1 crore in India.
S***'s getting serious - India imposes retaliatory tariffs on U.S., widening global trade war
idk why they impose 100% import duty.
Maybe Govt. got bribe from Indian Auto company.
US auto industry is much more advanced & established than Indian auto industry,also 100% import duty is for luxury segment automobiles only which are almost always 100% made in USA.It is an established trade practice to put heavy import duty on such products which cater to very small portion of population & have almost zero local components.
Nope. Many models of cars like VW etc. are made in India but their on road price includes 100% taxes on certain parts, especially engine parts+a cess, the name of which I don't recall which is around 10-15% and also GST of 18%.
100% import duty is too much.
Govt generates money from Tax but still Scams & sh**t happens in India.
There are multiple reasons for it.
1)It's usually on luxury vehicles that very rich folks buy.
2) Encourage local production, which brings jobs and retain revenue within the country.
3) Avoid dependency on foreign made products to prevent getting into a position where a country can be arm-twisted. This does not apply to Harley Davidson. But think of Crude oil. India can no longer import from Iran because of sanctions on Iran. We are now forced to buy from other countries for much higher market price.
Scams and frauds is a whole different chapter.
U read my comment wrong.
I meant that even though Govt generates money but still not able to prevent Scams in India.
which is not the reason for Higher Tax rate
Only 2-3% of India's population pay direct taxes so govt has to generate majority of its tax revenue from indirect taxes only.A rich farmer(or someone who laundered his black money by showing it as agricultural income) has to pay zero income tax but when they buy SUV at least govt gets some money via GST.
1. Actually it is on budgeted cars also like I have mentioned above. Nowadays even middle class families are buying cars in the range of 10-15 lacs
2. The finance minister was asked a question few days back that according to some report the number of jobs have decreased in India. The answer was it is because the government has made people capable of doing their own business by liberalizing rules and regulations.
3. That ban is more of a security reason, ofcourse from the US pov.
Who's to blame here then? In foreign countries there are slabs like say I pay xyz amount of tax so I will get concessions while buying say a car or I will get access to lounges etc.+ you know that the money is going to be used for the development of the nation. What do we get here, well we all know. Not against taxes, but rules here like that of agricultural income mentioned by you should be changed.
If I may recall correctly a report from my college days, the largest share of taxes is from excise duties and from this liquor has the greatest share. No one asks for a bill from a liquor shop. Hell no one asks them why are they charging Rs. 500 for a xyz bottle when the mrp is like Rs. 200. If these things can be fixed then it would lead to more taxes for the government and would stop laundering but then again its our great nation with world class leaders. So, expect nothing. Salud.
Well it is not like people are not responsible for this mess.It is not china or russia where there is no choice,but here a lalu can win enough votes to make govt if he play his cards right.How many people here even know about this party(I know about it because I read its articles published sometimes in timesof india editorial section)?People have enough time to forward child kidnappers messages on whatsapp enough times to create a mob lynching people or make an average girl winking her eyes into an online trend but when it matters there is nothing.
Policy | India is a socialist country - some proofs
Forwarding messages won't do shit. Remember Anna's Ramlila Maidan's fast? The point is acche din nahi ayenge is desh ke.
Well a 1000 mile journey starts with a single step.BJP started with 2 MPs in 1984 & see now.Maybe it will take 20-30 years but it will happen only if few hundred or thousand people start forwarding messages about a different party with clear objective goals today.However if people think that nothing will happen then really nothing will happen.
I thought aap might be the one. But look at it now. Until and unless 1 is a certified gunda, chota bheem or someone good in saying bhaiyo beheno aur mitrooo there is no entry for good people in politics. Remember that tripathi from your city?
AAP failed because it was not properly planned from the beginning(aka kejriwal split from anna to create a political party after seeing its advantage,it was not his initial plan).This swarna bharat party is also different in the sense that it understands that same old "socialist policies" are not going to take India anywhere if continues.That is why they say that they will promote privatisation & reduce subsidies,can you imagine them winning with these statements in current times where every party is in a race to give more freebies & loan waivers.Of course people will realise the cost of all these freebies & sops 20-30 years from now when China would be ruling Asia & we would probably be taking loans from them.
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