Is it true? On a bank deposit of Rs. 2000/- for one year, what you get is Rs. 160/- @ 8% interest. On a bank loan of Rs. 2000/- for one year, what you pay is Rs. 260/- @ 13% interest. But when you eat food for same Rs. 2000/- you pay Rs. 360/- @ 18% to Government!! This is real nice! Just to remind.. How much we pay for buying an item worth Rs 1000. Assume that I need to buy an item of base price of Rs 1000. Assume it attracts GST @18% I will need to pay Rs 1000 + Rs 180 = Rs 1180 for that item. Now, I need to earn Rs 1180 first, to be able to pay this amount. Assume that I am in the 20% Income Tax bracket (income between Rs 5 Lakhs and Rs 10 Lakhs per year). If I earn Rs 1486.15, then I will have to pay Income Tax of Rs 297.23 (@20%), and a Cess of Rs 8.92 (@3% of the Income Tax), and that will leave me with an earning (after Income Tax) of Rs 1180. Hence, to buy an item of base price Rs 1000, I need to earn Rs 1486.15. Which means that I pay Rs 486.15 in taxes on the purchase of an item of Rs 1000. And that, dear people, implies a tax of over 48.6% paid overall (through both direct and indirect taxes). Now, this figure will be far higher for items in the 28% GST slab. (It will be 61.2% in total taxes).
That calculation is flawed. GST is not flat 18% for all products, you might need to do a but more search on your part. Else, i will try to help find some details soon.
No, that’s a tax rate of 32.7%
Is it different anywhere else? I pay 25% tax, same difference between loan and savings interest, 10% sales tax and 20% tip on eating out. Add it up. And if there is state income tax, it's hell. The problem is number of direct income tax payers is very low in India. As that and accountability increases, it will moderate a bit.
Nope. Government spending never goes down. The scums will increase accountability to collect more taxes and hire more bureaucrats who will justify their existence with even more bureaucrats. The infestation will keep growing. The solution is to cut welfare and government bureaucracy. Better learn
Eyes spinning with your maths
What's your point? While you're at it, why not calculate what all the different parties involved in producing the product siphon off of the sales price?
Bad math. And the same logic applies everywhere. In bay area you end up paying 35% income tax, and 10% sales tax.
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Please don’t copy paste messages from WhatsApp
What's wrong in that?
What’s wrong is that the average Whatsapp forward is unvetted. If the goal is to have substantive discussions here on blind, then unvetted forwards debase the quality of the conversation. Same reason why I would say don’t post articles from Breitbart on here.
India is a socialist country and the inefficiencies (and ridiculous corruption) in the government run programs and freebies handed out have to be compensated elsewhere - taxes. According to most estimates, at the higher end only about 3% of the people pay income taxes. Everything adds up. It's impossible for India to become a developed country without massive reductions in population.
Thanos...where r u..
I think the equivalent of the 2nd amendment in an underdeveloped country like India will solve the problem.