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Import Duty on Vehicles - Appropriate

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  • #16
    Originally posted by animeher View Post
    Biggies are not setting up plant precisely because they know they don't need to. Peoply can't buy any above 250cc bike (except bullet) at sane prices, so they will have to be content with 100-150cc crop the companies currently have. If at all 250cc bikes are introduced at same international price level, then the current players may have to play in unknown territory.

    Secondly, this more export and less import story. Allow me to quickly explain: Suppose I produce rice and you produce daal. If I say I will only export rice, or for 10kg export of rice I'll import only 1kg of daal, I won't help your economy to improve. Fine, so this excess 9kg rice (assuming the prices are same) that you have gotten, how does it end up in the books? It is a 'debt' that you owe me. But how else are you going to repay this debt, except to send me daal?

    So basically, in order to have more export, we MUST have more import. It is not a one way road.

    Hope the above explain the stuff

    As per the responsibility thing, I am not going to fight or defend whether the import taxes are appropriate. Overfed and overpaid babus have made these laws, and they have got a good support from the current players. Like it or not, I don't think the decision was made seeing the 'responsibilities of rich to the poor' (those responsibilities are supposed to be taken care of from tax, and partially they do, by ending up in the pocket of our poor politicians).

    nice explanation
    never thought of it this way!!
    A good mechanic will let u watch without charging u for it!
    People are like motorcycles, each is customized a bit differently! :D
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    Bajaj pulsar 200 - 2008
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    • #17
      Originally posted by vipin_s View Post
      If I were industry minister I would hike duty to 200%, why import ? Let the biggies set up plants here give jobs to us and make profits and share them here in India ? Importing is bad on economy (both macro & micro).
      So, would you say all the bilateral trade agreements/FTAs etc are harmful?

      If I were the Commerce or Finance minister I would have abolished the duties. But as they say, if wishes were horses...
      A lone amateur built the ark. A large group of professionals built the Titanic...

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      • #18
        Its a simple logic we pay taxes half where majority are spent on making good roads, for our countries defence and for creating employment opportunities in rural areas, school for children below poverty lines but this happens after the lions share is gone to the politicians, so for the remaining developments if they need more money they have to find out some ways so this tax and all are small ways to do it.

        Secondly, u say u pay 100% hike for the imported bikes have you ever tried to find out the differnce between the price at what you buy and the price at what it is manufactured.

        Lastly, anyone who has money and want to enjoy will enjoy that can be any way eating in a costly restaurant or driving a luxury car or buying a foreign bike too.

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        • #19
          @Ayush Singh:

          Have you noticed this thread hasn't garnered much interest? It's not that people don't have things to say. It's just that they know whatever they say, you'll stick to your opinions. So what's the point?

          You know what? I suggest you spend more time at xBhp. Understand Biking for what it is. xBhp is supposed to be doing that, and I'm hoping you'll be one more convert.

          Also, do read the stories of rossiter and gsferrari. They didn't buy their superbikes by taking close to 12 or 13 lakhs lying around the house and laying it down at the Yamaha showroom. Though succesful in their own right, even they've had their share of struggles to mount.

          Rossiter's story

          gsferrari's story

          So a superbike isn't like a piece of modern art a 'connosieur' with shitloads of money goes out and purchases simply because he can.

          A superbike is much more. Words like passion, fulfilment and sweaty leather should come to your mind when you think of one. Not entertainment, wastage of fuel and excessiveness.

          Which city are you from? Join a xbhp G2G, try to understand what this website is all about.
          Riot Engine |Norton WD 16H | BSA C11G |Enfield Fury
          Thanks to Mr. Muthukumar, B&QRest Garage for these acquaintances!


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          • #20
            @theslayer

            Affirmative.. Thanks for pointing out what biking is all about, never knew it..

            As you can see I've mentioned in the thread's topic that Import Duty is appropriate, the reason I started this because only at xBHP I saw some airhead say that these taxes should be abolished.

            I do not understand what you were trying to point out with those links. If one gets pleasure by having a superbike then s/he pays for that and that's what they did. You still need to have something in you to get a loan for 12 lacks to buy a bike in India.

            It ain't your fault in questioning me. You and your mates live in a different world. When I talk about energy its all about saving it, but bunch like you talk in "utilizing" it for entertainment. Its rational, for you but not for me. This is like living on two ends which never meet.

            "So a superbike isn't like a piece of modern art a 'connosieur' with shitloads of money goes out and purchases simply because he can."

            The guy can and that is why he does. How many of these guys are there? Why ain't the whole bunch of Pulsar takers running after SUPERBIKES, man open your eyes, standard of living has improved for you and your mates in metros but not in rural India. And about the loan, I wonder how you got to that without considering the margin.

            To me this website is all about talking mechanics. I would like to read about how a fellow member got FI in a carb engine than to read how another member felt the air gushing when he was doing 230 on his R1.. Different people have different meanings of their lives. I've mine and I like being this way.

            Thanks a lot for your suggestion, don't wanna be rude or sarcastic, but guess I don't need it..

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            • #21
              Mr. Ayush, I know Xbhp's about biking, but let's just discuss it. I agree that importing is very bad for economy. But, does this justify 100%+ Taxes?
              How big should be the number? Government's attitude towards this is:-->

              1. The government says these are Luxury Vehicles. Somebody tell a Neta to ride an R1 - Half an hour later he'll need a Wrist & knee Surgery ... It's a pain to use these bikes. Wtf luxury??

              And why do Helicopters And Yatchs attract only 40% Tax. They are Luxury, aren't they?
              Flying machines are taxed 40% and 2 wheeled road-stickers attract 110%. Wow!! How Fair and Justified is your government, Mr. Ayush.

              2. Bikes above 800cc? No upper bhp/cc/speed limit?? No safety Gear Compulsory With each Such Bike?? Wow, what a responsible government!
              What do they want? Rich kids to die? Reduce Population this way?

              3. Can you guarantee the good utilization of your paid Tax money? We usually can't guarantee, but Unfair things are Unfair, right? Think!

              Please understand that Government is also a working body - it has its own Profits and Losses.

              My point is that the government needs the Cash. Just because bikers don't oppose, they are a soft target ... If they tax Essential items, there would be Protests.

              No offence and nothing personal, but government's actions here, can't be justified.

              If I were industry minister I would hike duty to 200%, why import ? Let the biggies set up plants here give jobs to us and make profits and share them here in India ? Importing is bad on economy (both macro & micro).
              I doubt 200% will change anything except making the R1 about 24L. They would still be selling R15 and Unicorns...
              and yes, There would still be no trace of R6, and CBR 600...
              Last edited by Samarth 619; 09-18-2009, 12:45 AM.
              ---
              Brotherhood, Rules, Freedom. Xbhp.
              Indian riding = Alertness, Anticipation and Adjustment.

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              • #22
                well what i feel is that company like tvs is having their racing department and can do hell lot of r&d on development.they have a good future.even bajaj and hero honda can do such stuff.trust me guys,just let the government allow more race tracks....even our indian companies can be awesome at bikes(no one cant beat an indian brain).that day wouldnt be far away when we have these company 500+cc bike on road with pure performance....with a gulpable price tag...and we have to encourage these guys too rather than running behind Japanese and European and mocking the indian companies.lets hope vijay mallaya gets f1 track in india...things would be different then.

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                • #23
                  Originally posted by NitinGirish View Post
                  So, would you say all the bilateral trade agreements/FTAs etc are harmful?
                  If I were the Commerce or Finance minister I would have abolished the duties. But as they say, if wishes were horses...
                  @ Nitin, it's not about harmful or something, any nation will always give importance to exports and less to imports except food/perishable goods. India is a nation of billion people, the growth rate is one the best in the world, people's income is rising, so 250..400...600cc bikes will become affordable as time passes....govt. should think long term and ensure economical advantage to our nation not to other nations. Based on this logic I feel govt. should increase duty so that penetration of imported bikes reduces and force biggies to start here itself....If Ninja is made in India, it will cost under 1.5lacs, it will sell more than imported 3.0 lac tag ??!! Plus more people could afford bigger bikes for lesser rupees.


                  @animeher : Your example sounds good for perishables/food items, not engg. products/bikes/cars. If we import when will we develop capabilities to build big bikes ? How will you feel to see Indian made V-Max / Hayabusa / R1 / Fireblade selling hot in US/UK/Japan ?? I would feel proud to see Made in India Hayabusa on UK/US streets than a bag of Punjab Basmati rice in grocery stores there...

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                  • #24
                    @vipin: you can stretch the example to any number of items to import/export. The basic point is any country has to give equal weightage to both imports as well as export. While exporting something, you don't want to import something that will in future affect your economy. Bikes and cars are taxed high while importing to actuallly discourage the possible buyers, so that there will be no pressure on Indian bike makers, and the Indian auto sector is not affected much by imports. That's not the case in Yachts/airplanes.

                    Indian made 1000cc pulsars etc are not available because 1. there may not be enough technology or expertise available to Indian cos; and 2. They don't need to, because what else the consumer is going to do if they don't produce high CC bikes? Nothing. Once the competition gets introduced, then only things will evolve. Remember, even a seed doesn't grow till it is pressured down by sand.

                    I recommend reading a book named 'Economics in One Lesson' by Henry Hazlitt published in 1946 and revised many times. It will give good idea about how government policies are planned, and how they are effective or harmful (however, there is bit capitalism involved).

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                    • #25
                      Many a times, ppl who are doing masters, put in a debatable topic in forums to get some info for their academics. Not sure whether this is such one....

                      Comment


                      • #26
                        Guys.. I was wondering.. Can we do something about this ridiculous law of 100% Duty. I mean I understand duty on a 50-100Lac car.. that can be termed luxury (cars like Sclass.. Maybach etc).. but 600CC supersports costs somewhere around 4-5Lacs and in this price range withs ays little duty of 30-40% these bikes are affordable to many indians.. not talking about Rich folks here.

                        I mean a petition kind of stuff and approaching the government.. I know nothing will change drastically but atleast to put a word across.. also approaching mainstream media is also a good idea. I am saying this is coz many people here on the forum have a reach (not saying influence) especially the xbhp guys... common you can go take the interview first thing with the Harley chief of india.. then we can atleast approach the Gov regarding this.,, and perhaps the Gov can benifit with lower duties as more people will buy these bikes..

                        just my 2 cents..

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                        • #27
                          Originally posted by Ayush Singh View Post
                          Great to hear from all the members in here. I appreciate your words and time on this thread.

                          @niks_devil666
                          In developed nations taxes are not on the basis of slab system, hence a part of income which is extra gets deducted in tax which at times turns out to be a lot, 33% or so, where as in India the slab lets the tax to be deducted in tune of 10-30% for income above 5lacks and so. Adding on, majority of Indian population's income lies in the Nil slab. A small percentage of people living mostly in urban India pay taxes above 30%. The average software engineer in India pays less tax than what one pays in US.

                          And i'm sure that you are aware as how much they get in US. we don't even get fraction of it here in India. so comparing the tax with them is comletly baseless.

                          @theslayer
                          I understand entertainment is a part of life and it should be there. I cannot imagine my life without music and movies. However, entertainment like riding a 1000cc motorbike which consumes more fuel per kilometer than a poor rural Indian earns in a day is lavish. I ain't against the enjoyment factor, I'm against the fact that people spend huge money on entertainment when someone living few miles away doesn't get enough food to survive.
                          So, when we are talking about 1000cc bikes, we are talking about a lot of money, and that money can come only from the one who has the capacity to spend, i.e. the rich, so even if they pay double on what they might have paid in US, the rich won't mind it.
                          With time these policies will be relaxed and of course we will see bikes sold at much affordable prices in India, but the time needed is inversely proportional to development. I'm sure you don't want to ride a Harley from the "small ways" made in between slums.
                          Don't mind bro, but i looks like that you think that rich people have a money tree from which they can get as much as they want and wouldn't mind it. It is quite easy to say that they don't mind paying extra??? if it was you or me in their shoes then i would surely have questioned every extra penny that is going out of my pocket. At the end of the money it's hard earned money.
                          And why only Bikes???? There is no login behind paying double the amount of actual price. No reason whatsoever can justify that. And regarding poor people, I've seen so many people who raise multiple children so that that can sit back at home enjoying all means of high and sending their children to earn. to the traffic lights, begging, selling stuff and what not. most of the time they are into alcohol stuff and don't care whether their family have got their meal or not.
                          And then I've seen so called poor people rising from there and becoming successful. India is full of such stories.



                          @svjhonda
                          How many people do you think want a superbike? A small percentage of people living in urban India. The rural population still strives to own a motorcycle. For that small percentage that wants and can afford a superbike, spending extra is not at all difficult.
                          Honestly speaking, if you have the money then you will also go for the Super bike. Each and every member here would do that and anyone who has interest in bikes would do that. Every college goes, every guy with dreams in his would go for it. So It's not small percentage in urban cities, it's about the passion which is there in rural areas as well. And Spending extra for no valid reason is always difficult.

                          @viny
                          1. There ain't much takes of 250cc bikes in India. In metros the common bike is a 150cc, in semi urban its 125cc and in rural India its 100cc. Its demand and supply principle that doesn't lets manufacture go high on engine capacity.
                          2. Yeah I agree with you on this. The sticker job from Hero Honda is really bad and can be implied due to lack of quality competition.
                          3. I understand that the government wants to earn some money and also to limit the use of these vehicles to the class that can afford it with a smile. However, what the government fails to deliver this extra money to the poor and in need.
                          4. Pay real amounts, then please don't bother paying the extra.
                          1.> Who says that there is no market for 250cc>???? are we not dying to get a proper 250cc here in India??? if there was no market for 250 then there would have never been any RD, No Bullet and nothing. 150 is common because there re plenty choices to choose from and if we get similar choices in 250 then it would be as common as 150's
                          2.>It's not about quality competition, it's about your attitude. competition is plenty but who cares??? And why HH only? don't you remember what happened to the first lot of discovers??? they were in the market sans any stickering work and then they launched one with snickering and went straight to banks all smiling.
                          3.> stealing more from a part of society is in no way correct. rather than constructing numerous memorials (like in UP) if that money is wisely used then people from UP and Bihar will never have to step out of their own state to find better live.Rather then burdening the population, they should place a mechanism in place for the effective and meaningful distribution of resources.
                          4.> real amount and extra amount never go hand in hand.. If it's real, it can't be extra.
                          @pudix
                          I've extensively traveled in various poor states of India. Have been to many villages, hitchhiked on villager's vehicles, and have seen the face of India from a farmer's view. I saw how much pain, trouble and misery poor people go through just to survive.
                          Even i've been to many places in India(thanks to my father army background) and i've seen all the diffrent faces of India. But tell me; there are so many people sleeing without any meal. Do you also do that because few people are not getting anything to eat? Do you also walk to any place where you have to go, because many people cannot afford transportation?? Have you stopped wearing any branded stuff because they cannot afford it? Have you stopped eating in resturants and pizzahut because they can't do it? or have you stopped watching movies? In my case atleast answer is NO. To help someone does't mean you start starving. there are many ways to help them but then you should be logical enough to select the right path. And pne more point, the large part of farmer population takes a loan in name of their feilds and then spend it on their childrens marriage and other things. Then they ask govt to waive it off. I'm not saving that everyone does that but there is large population who never uses these funds the way they are suposed to be used. After this I never went back to Taj Land's End or an expensive phone and have used that extra money that I had to help the poor in some way or the other.
                          With this zeal to develop infrastructure in Rural India, I felt the need for people to see the picture before being biased on the use of expensive vehicles in India. When your brother in a village can ride a Splendor, feel free to own a Harley, but when he struggles to repair his bicycle, its all obnoxious.
                          India has been talking about development and GDPs, but the whole lot of development is limited to a large Urban population. Even these villagers want a better life and so they migrate to metros increasing burden and population. Problems are everywhere, but they have different sets in places. In India we are hampering our thoughts by thinking that we have the latest Blackberry and now its time to have Harley, where at the same time a farmer is committing suicide because he cannot repay 1/3rd of what that Blackberry costs. Blame it on politicians, or on system, trouble starts from us.


                          Summing it up, I ain't against the use of expensive vehicles. I feel the need to have a balance in our society and nation, a Harley and a bicycle doesn't create a balance. Hope my comment didn't hurt anyone's, I just tried to present my take on this.

                          Look at my answers in Bold

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                          • #28
                            Originally posted by Ayush Singh View Post
                            @theslayer

                            Affirmative.. Thanks for pointing out what biking is all about, never knew it..
                            Sarcasm is good when you're trying to crack a joke, but otherwise, nope, doesn't help at all.

                            It ain't your fault in questioning me. You and your mates live in a different world. When I talk about energy its all about saving it, but bunch like you talk in "utilizing" it for entertainment.
                            You're in Greenpeace too aren't you? Ok take some advice, saving isn't gonna help now, its too late for that. Go don your white coat and thinking cap and start wondering how on earth you're gonna find a solution to separate hydrogen from the elements! I'm serious..



                            "So a superbike isn't like a piece of modern art a 'connosieur' with shitloads of money goes out and purchases simply because he can."

                            The guy can and that is why he does. How many of these guys are there? Why ain't the whole bunch of Pulsar takers running after SUPERBIKES,
                            You haven't followed those links have you? Take some time out, read them.

                            To me this website is all about talking mechanics. I would like to read about how a fellow member got FI in a carb engine
                            So the guy spends around 25k to get an Fi Kit into his carbed vehicle, thereby obtaining a fractional 0.5PS power upgrade and a 4kmpl improvement in fuel efficiency ( or maybe neither, considering the quality of the job executed) and he wins your heart eh?

                            That 25k could be be used to feed God knows how many poor children, clothe another million and with whatever is left, buy another bottle of whisky for the drunkard father sherry_unicornlover pointed out!

                            Thanks a lot for your suggestion, don't wanna be rude or sarcastic, but guess I don't need it..
                            Originally posted by theslayer View Post
                            @Ayush Singh:

                            Have you noticed this thread hasn't garnered much interest? It's not that people don't have things to say. It's just that they know whatever they say, you'll stick to your opinions. So what's the point?
                            Told you so. I knew you wouldn't listen. So may I ask you Sir, why did you start the topic if you aren't here with an open mind? If you thought this was simply a space to advertise your propaganda, how about donating some money to xBhp?
                            Riot Engine |Norton WD 16H | BSA C11G |Enfield Fury
                            Thanks to Mr. Muthukumar, B&QRest Garage for these acquaintances!


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                            • #29
                              The govt. should atleast lower the import duties . Import duties were put in effect to protect the producer's of one's country , but when there is NO producer of bike's of 600 or 800 or 1000 cc then who in the hell are they protecting .
                              They dont act on this issue because there is no protest...........
                              and some say that the income from income go in developing our nation (which it doesn't), how much can u develop a nation this BIG by the import taxes , i mean come on how much SBK's are even imported........

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                              • #30
                                it is justified

                                In Economics, it is called 'infant industry protection'. Since the indian two wheeler industry is still infant, they get protection in the form of 110 % excise duties on imported ones.
                                Its not that pulsars and karizmas are threatened from imported 600cc plus bikes. But the infrastructure in india, law and order, speed limits, condition of roads are few reasons the govt wants people to stay away from them.

                                I play guitar, and have an Ibanez grg 370 dx electric guitar at home.
                                I can easily compare it to a superbike. When i bought it, i was as excited as someone buying a superbike. But actually such an electric guitar needs more than some playing at home. It is not justified by playing at home or recording some cover songs. I should take it on stage, lots of live performances and lots of maintenance and money to be spent on. Also it is so good, that my playing speed should be equal to John Petrucci(currently world's fastest player), but i simply cant get the time or teacher to do so, Thus it is lying mostly in the corner, as i mostly play my other two guitars(one yamaha steel acoustic and another yamaha cg101a classical guitar).

                                Similarly, a superbike deserves more than what most indians use them for.They only buy it for showoff and drive within city limits. And far less of them buy Tourers or Sport Tourers to go on long tours. These sports bikes are best utilized on a CIRCUIT, where the braking, turning, slipper clutch, steering dampers, torque, balance,aerodynamics,grip, etc is truly utilized. What a person can achieve by simply driving on city roads? Some hydraulic damage due to potholes and bumpers, as it is they have to drive from 1 to 3rd gears only.

                                Even John Abraham agrees that indian roads are shit for imported bikes. Still most of people buy superbikes due to 'DHOOM effect'.

                                Back on infant industry, the govt won't reduce duties till the indian manufacturers produce 600 to 1000cc bikes, which can rival those imported ones at least in price terms, if not in technology.
                                From economic point of view(if the duties are reduced), if even one Potential karizma buyer gets an imported bike, it is a loss to indian industry, and thinking of all the workers and staff in these industries, the govt thinks better to keep the excise duties as they are. As on today, the foreign countries are way too ahead compared to Indian ones, and if duties are reduced,only few people will buy the cheap Indian bikes. So if u are born here, simply buy the best u can from indian manufacturers, or dont buy anything at all. Bajaj and hero honda will eventually reach that stage in future. And if you all feel so much, why not become top notch automobile engineers and join R&D in TVS or Bajaj or Hero Honda?

                                Anyways who the heck can have full pleasure from a superbike in india compared to an abroad guy? In my view point, a ninja 250r (a sports tourer) is more than sufficient to satisfy the need for speed on indian roads.

                                The sportsbikes are simply circuit bikes, which they sell all over the world as a street bike, and it can be anything but that in India.

                                NOTE: Even i am diehard fan of superbikes, and bought a comet gt 250 last year in contribution with a friend, but the fact remains fact that currently India is not suitable for superbikes, PERIOD.
                                Last edited by arya809; 04-17-2010, 07:43 PM.

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