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New tax rate on shaving equipment & razors for India.

A new tax rate has been announced yesterday (18th May) on shaving equipment & razors for India, as part of the rollout of Goods & Services tax. Shaving equipment & products including will be taxed at the highest rate of 28%.
 
Different countries tax different things, so a 28% tax on shaving equipment and razors isn't necessarily high, unless other taxes are also high. It's my understanding that India has a top marginal personal income tax rate of 30%, and owner occupied dwellings are not subject to property taxes.

If someone wants to tax my shaving purchases at 28% and eliminate the property tax on my home, I'd be good with that.
 
Bad move by the Government! Being an Indian I oppose this move! The prices of merkur and other popular razors listed on Amazon India has also shot up.
 
Best to buy a bunch of stuff before rates go up!

I plan to. Soon.

Different countries tax different things, so a 28% tax on shaving equipment and razors isn't necessarily high, unless other taxes are also high. It's my understanding that India has a top marginal personal income tax rate of 30%, and owner occupied dwellings are not subject to property taxes.

If someone wants to tax my shaving purchases at 28% and eliminate the property tax on my home, I'd be good with that.

Yes, but they are not reducing property taxes.
In fact, property tax has doubled since 2010, at least in Bombay.
Taxes seem to be increasing across the board.
Shaving products, including creams, will also be taxed at the new rate.
 
Is this 28% import fee also include a 28% export fee say to the USA.?

I think it's pretty much universal with sales taxes that exports are not subject to them as it would kill the export industries off pretty quickly. Since the goods might also be subject to duties and taxes in the destination country which would be double taxation, thereby making goods from the exporting country uncompetitive. Governments don't want to kill exports which bring in foreign currency and keep the trade numbers in surplus.

India has been making a lot of effort to kill off their huge underground cash economy. I'm guessing this is a Value Added type of tax which pushes the taxation burn down to the end user, which means taxes are collected, then rebated, along the chain until reaching the end consumer who receives no tax rebate. It reduces the incentive for manufacturers to have a cash price, and because of the paper trails it increases the chance of being caught avoiding tax. Still, India is so used to their alternate cash economy, that it remains to be seen if this will work.
 
I've read about India's new Goods and Services Tax on the job.
Here's some perspective: The majority of goods will be taxed at the standard rate of 18%. For services, healthcare and education will be exempt, transportation will be mainly taxed at 5%, and items such as five-star hotel accommodation and entertainment will be taxed at 28%.

The objective of the implementation of GST is to reduce the inefficiencies in the current tax system, such as multiplicity of tax rates, elimination of cascading impact, and ease of compliance.
 
It will be a value added tax, true.
But the taxes that preceded it were also VAT's.
The underground tax economy is a myth:
Let me explain.
You need some work done at a govt. office- lets say you're a trucker, & your truck needs to enter Bombay.
If you want to spend less than a day at the entry point, palms have to be greased, else your paperwork will be found to be 'incomplete' or 'not valid'
So you grease. With money that you have paid tax on.
Now, the official taking your money doesn't pay tax. He takes his share & passes the rest on to the politician who got him the job.
Said official cant buy a car with it, can't easily invest it. Its now 'black money'. Its all cash, so its mostly spent on luxuries, cellphones , entertainment, women, booze, etc. Anywhere where untraceable cash can be spent. When spent, indirect tax is collected. At which point its 'white money' again.
Since the money returns to general circulation, & is then taxed, that is why I call the parallel economy a myth.
Of course, it's a bit more complicated than this, &I'm told there are some avenues for the investment of black money, but you get the gist. The vast majority of the parallel economy revolves around the political establishment.
The politician who received his cut of the bribe does not pay tax, and legally so. For he can claim he received 'anonymous donations'.
Which, under the tax laws, is perfectly legal.
 
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And I've been thinking that my country is corrupted.
Aren't their bank accounts checked by some kind of judicial bodies?.
We had terrible corruption, after 3rd form of authority- judiciary decided we need USKOK and tax police. Our former prime minister, his ministers and many others have trials or are in jail.
Situation is still bad but changing to better.
 
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I plan to. Soon.



Yes, but they are not reducing property taxes.
In fact, property tax has doubled since 2010, at least in Bombay.
Taxes seem to be increasing across the board.
Shaving products, including creams, will also be taxed at the new rate.


Indeed, what would be the average effective property tax rate in India?
For instance, here in Florida, net of Federal credit, property tax is about 1% of fair market value.
And sales tax is 7%. Plus marginal Fed income tax rate is 30%.
 
Indeed, what would be the average effective property tax rate in India?
For instance, here in Florida, net of Federal credit, property tax is about 1% of fair market value.
And sales tax is 7%. Plus marginal Fed income tax rate is 30%.
It used to be a percentage of the fair market rent (or expected rent) based on a list available with the tax authority/municipality. Since the rent rate claimed by them was usually higher than the real rate, most taxpayers were taxed higher than they should have been. This system is in the process of changing over to a system based on fair market value. Which is also higher.
I'm afraid I don't know the rates, as the tax is not paid directly by me - I pay the housing society, & they pay the tax.
But I'm pretty sure it's not as high as 1%. Were it to be, the govt would have to provide schooling, uninterrupted power, water, decent roads etc.
(btw - 95% of people do not pay any direct tax whatsoever)
 
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