Story of India’s middle class
A Middle Class Person wants to Buy 2 Wheeler for his family. He works hard, saves money & test rides a Honda Activa 110 CC. He feels it is good.
He enquires the cost.
Ex Showroom Price is ₹75000. He realises that this price includes 28% GST (around ₹17000). 28% YES, THAT'S RIGHT.
₹6000 Road Tax.
₹14000 Registration Charges.
Both PAID TO Government.
₹5000 for a Motor Insurance (18% GST ₹900 to Govt). Yes that is 18% GST.
Accessories ₹6000 (GST included)
So, now he totally has to pay ₹1,06,000.
He calculates that he eventually pays 60% to Dealer & 40% to Government. He has already paid 30% tax to the Government in the First Place 😀😀
He feels a bit let down. But then he asks himself:
- Why am I Paying 28% GST on a 2 Wheeler when I have paid 30% Tax already on my income?
- Why am I Paying 18% GST on Motor Insurance when this is supposed to Protect me in case of Accident?
- I am not taking any Loan, but still I Pay almost ₹40000 to Government just to buy a Vehicle for my Family. I pay ₹66000 to the Vehicle Dealer. He also has to make some money out of it.
So I am actually paying Government so much for the Vehicle.
He asks these questions, but realises that he is Middle Class. He pays the Taxes, buys the Vehicle, Takes Photograph & Goes Home to Enjoy with Family. He goes back to Work the next day, so that he can afford many other things. Cycle Continues...
This is the Story of Every Middle Class of India
He enquires the cost.
Ex Showroom Price is ₹75000. He realises that this price includes 28% GST (around ₹17000). 28% YES, THAT'S RIGHT.
₹6000 Road Tax.
₹14000 Registration Charges.
Both PAID TO Government.
₹5000 for a Motor Insurance (18% GST ₹900 to Govt). Yes that is 18% GST.
Accessories ₹6000 (GST included)
So, now he totally has to pay ₹1,06,000.
He calculates that he eventually pays 60% to Dealer & 40% to Government. He has already paid 30% tax to the Government in the First Place 😀😀
He feels a bit let down. But then he asks himself:
- Why am I Paying 28% GST on a 2 Wheeler when I have paid 30% Tax already on my income?
- Why am I Paying 18% GST on Motor Insurance when this is supposed to Protect me in case of Accident?
- I am not taking any Loan, but still I Pay almost ₹40000 to Government just to buy a Vehicle for my Family. I pay ₹66000 to the Vehicle Dealer. He also has to make some money out of it.
So I am actually paying Government so much for the Vehicle.
He asks these questions, but realises that he is Middle Class. He pays the Taxes, buys the Vehicle, Takes Photograph & Goes Home to Enjoy with Family. He goes back to Work the next day, so that he can afford many other things. Cycle Continues...
This is the Story of Every Middle Class of India
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View all 18 comments Below 18 comments
Unfortunately, we have multi-tax layers. A common citizen whenever buys any product even of Rs. 1/- he pays tax, over and above, he is required to pay income tax. Almost 50% of what one earns, is paid towards various types of taxes.
Aug 21
Middle Class is not an organized Voter, hence his vote does not have any value and hence Govt will not pay any attention to that. No Politician supports Middle Class and this category is taken for granted.
Aug 21
More than 100 Countries are facing severe recession but India not facing recession, why? We can understand and our contribution is there in it so we should be happy. Before the introduction of GST the taxes levied were not transparent or not known to people whereas now we understand easily what is that charged at each level and businesses can easily take the credit of it. Earlier, it was around 42% Indirect Tax was levied but no credit was given and it was not transparent and too much of leakages were there. Further, coming to Income Tax, in our Country only 7% population is coming under Income Tax net but more 50% citizens cry saying that they are paying income tax which is really fooling around.
Aug 12
Time has changed.too much improvement in income and expenses.hence choices from sleeper class to AC ,AC to 1st AC in train journey.shifting from train to flights.its a change or sign of development.poverty, unemployment, inflation, are limited up to leaders. All are earning and working hard. For facilities, one has to pay where ever applicable.Govt is no industry.it uses our money for us.we pay , govt uses in other developments.every thing is important. road infrastructure is also our requirement.cameras, trafic police.when every thing we want, we have to pay for the country.its our country. No new definitions regarding income are decided for poor, middle or high class. Condition is such that people go to ration shop in cars to collect ration. We have to re evaluate the system again. Even then middle class has to think, take loan to buy a scooty today. Prices are too high. How others are making e scooter cheaper than us. Prices are high.
Aug 12
First of all we need to define who is a middle class. One whose income is below Rs10 Lakhs p.a or one above this but upto Rs15 lakhs. In my opinion, saying that the middle class pays 30% income tax straight is a bit exaggerated. True 28% tax on vehicle for a two wheeler is high because it has become a must for today and owned by even a person earning Rs.3 Lakhs p. a. . Also 28% GST on Vehicle Insurance is also atrocious. Definitely Government can recognize some of these needs and help the middle class instead of being adamant. Road Tax is acceptable, but please provide roads. We are driving on Moon's surface.
Aug 12
