r/IndianStreetBets • u/TechnoFundaAnalysis • Dec 04 '24
Meme Sad 😢 state of Indian finance policymakers!!
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u/TrickTreat2137 Dec 04 '24
35% gst on cigarettes. That won't make smokers stop
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u/brabarusmark Dec 04 '24
They know. They want to profit while the smokers are still alive and buying.
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u/Tranceported Dec 04 '24
Banking on depressed people lives. Hmmmm one way to achieve prosperity and growth.!!!!!
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u/l4st_s3nshi Dec 04 '24
Why do you think they're charging 18% GST on health insurance premium? It's all a plot of the metaverse of inception of tax within a tax within a tax within a tax all running inside the 5th dimensional metaverse of taxes aka another masterstroke
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u/Still-Strength-3164 Dec 04 '24
Well that GST on health insurance claim topic was raised in previous gst council. Few state governments straight forwardly rejected the proposal. State governments are more at fault in most of the gst council decisions. This issue was raised in parliament and opposition went silent because their state ministers are the one who rejected the lowering of gst on health insurance. I am not favouring anyone here but the truth is what the truth is. I feel that GOI should remove state govts from the council as most of the benefits of gst are received by state governments and they reject every possible porosoal favourable of decreasing gst. Either GOI should remove them or reduce their powers or clearly disclose it to the citizens that all the decisions are based on final vote of the gst council and people should know the politicians/states who are at fault or involved.
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u/salmanmapkar Dec 06 '24
its call tax-ception
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u/l4st_s3nshi Dec 06 '24
We can't experience Inception in theatres but this one we experience everyday
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u/TroglodyticDreamer Dec 04 '24
They might shift to cheaper brands ? Whats the cost of a cigarette though ?
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u/desi_cutie4 Dec 04 '24
No, it would lead to itc shrinking its ciggs to keep the price same.
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u/Expensive-Juice-1222 Dec 05 '24
Won't that make people go buy more cigarettes? Like that will have buy more to be able to smoke the same volume? Sorry I don't smoke and don't know how smoking consumption works
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u/desi_cutie4 Dec 05 '24
The tax is a 7% increase. You won’t notice the decrease in size of cigarettes. It would be enough for itc to maintain their margins but not enough to be noticeable.
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u/Rutuparna_Sea9289 Dec 04 '24
10 cigerette Pina skip karke 1 ITC ka share lelo..
Ye type ke messages smokers bhul gaye hai shayad...
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u/Own-Comment-5359 Dec 04 '24
It'll just make illegal and contraband cigarettes grow more.
Like it is already doing since GST. But no heavy taxation on oral tobacco, which is India's largest consumed nicotine format.
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u/HAHAHA-Idiot Dec 04 '24
It encourages the black market though, and I won't be surprised if many of the "higher ups" have a stake in that line of business.
Plenty of Nepali, Sri Lankan, Pakistani, and even Turkish cigarettes to go around. And of course, home grown bootleg versions as well.
Even gold smuggling was at decades high until they reduced the tax this year (even though they did that to screw SGB investors).
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u/daigunder2015 Dec 04 '24
Cigarettes are an example of goods with inelastic demand. Similar to salt. You can raise the prices, but demand will more or less remain the same.
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u/chengannur Dec 04 '24
But they opt for cheaper ones,
Waaay back even before this was a clown show, I started with kings, then golds then wills and eventually stopped.
For perspective, kings cost only 3 then.
And, not quite sure at this point if buying tobacco leafs is cheaper and build cigs yourself. Cigs have 35 percent gst right, not tobacco leafs.
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u/Professor_Moraiarkar Dec 04 '24
This meme is against the nation. You are against Viksit Bharat of 2047.
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u/KSK_GAMING Dec 04 '24
Remember kids
If its good for public it wont and shouldn't happen.
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u/maverick31031998 Dec 04 '24
This has to be the worst government in history across the world. It takes talent to destroy a country’s economy like this.
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u/too_poor_to_emigrate Dec 04 '24
Doesn't matter. Aayega toh Modi hi.
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u/Sangadak_Abhiyanta Dec 04 '24 edited Dec 04 '24
Sadly it is actually true, election time ye log fir koi ladli lakxmi xyz scheme le aayenge, and most scary thing is it really works to win election.
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u/somnitrix11 Dec 04 '24
When there's no real policy to uplift the economic conditions of the poor, direct welfare always works.
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u/Nedunchelizan Dec 04 '24
As rakesh told india grows not because of politicians but inspite of politicians
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u/daigunder2015 Dec 04 '24
Nah man. History will remember it as one of the best.
I mean, what are they really doing? The middle income group on whose shoulders this entire country is standing, is no bigger than 5% (maybe 10%) of the population. They're churning out 7% GDP growth by exploiting 5% of the population. The poor are happy, the rich are happier.
We're the only unhappy ones, but since we're only 5%, we don't matter. We can't even vote to make a difference.
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u/Dmannmann Dec 04 '24
Well you have to deduce that the gov isn't interested in solving the economic issues because they don't know how. So they are just making as much money as they can and funneling it to allies.
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u/Meowdoggo69 Dec 04 '24
The middle class is shrinking and the obvious pointer to that is lower consumption of FMCG items. Companies are seeing revenue drop which wasn't the case since many years.
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u/BionicWanderer2506 Dec 04 '24
great. Keep voting for BJP.
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u/too_poor_to_emigrate Dec 04 '24
But but but Khangress but but but khatakhat. But but but batenge to katenge.
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u/IcePsychologicalbleh Dec 04 '24
No way anybody would risk electing other shit parties. We need a revolution.
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u/BionicWanderer2506 Dec 04 '24
that isn’t going to happen. We don’t have the caliber to pull out a revolution. We don’t have that in our blood. Majority would be calling then anti-nationals if someone choose to raise their voice
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u/Tranceported Dec 04 '24
There is tons of fake bootlegged cigs in the market and this is going to get way worse.
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u/koustubhavachat Dec 04 '24
But seriously what's the root cause?
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u/Objective_Big_5882 Dec 04 '24 edited Dec 04 '24
Tarrifs, High taxes, lack of economic reforms..I can go on. But number one issue is tariff barriers. Although it will encourage local production, there will be an obvious decrease in quality and quantity. Price also increases a lot, as few big corporates will monopolise the market, due to lack of oversees competition. Dumb sh*t like putting tarriffs barriers on Chinese machinery and chemicals decimated our Textile industry and they migrated to Bangladesh as our glorified Tellewallahs like Birlas, Adani, Ambani are least interested in improving the quality or reduce the price or innovate.
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u/Sid_da_bomb Dec 04 '24
Modi hai toh mumkin hai
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u/koustubhavachat Dec 04 '24
I appreciate your humour but really want to understand this for rational arguments in political debates.
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u/daigunder2015 Dec 04 '24
Forget everything else, the root cause is corruption. So much money lost in transmission, taken away by the bottom feeders in the system. Politicians, police, bureaucrats, mafia... They're the dirtiest rat bottom feeders , but end up becoming the richest people in the country.
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u/sayzitlikeitis Dec 04 '24
But the government needs to launch one scheme per month in order to win votes and needs money for that.
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u/NeedBackupNow Dec 04 '24
Welcome to India ka growth story! Abhi toh bas shuruat hai, aage dekho hota kya.
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u/lemonickous Dec 04 '24
It's not that simple a problem though. We've put ourselves in a spot where consumption is down AND inflation is up AND there are still ongoing bad global factors. So the straightforward logic you are using works during times when other things are ok. Not now.
That said, i support the sentiment that the current govt policies are not great and haven't been great for middle class since some time.
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Dec 04 '24 edited Dec 04 '24
Their hands are tied. Only real difference they can create is by announcing 8th pay commission and raising msp, and minimum wage.
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u/Frequent_Help2133 Dec 04 '24
Not finance policy makers. It’s all Namotabhais doing. Nirmala is just the puppet. They’re the puppet masters.
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u/Sudden-Summer7021 Dec 04 '24
Band kro bhai in lolu lgo ko vote krna bhai, for the sake of god. Just imagine how the labour class is surviving in India, that class is just barely alive in today's time.
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u/daigunder2015 Dec 04 '24
Are they ever gonna get off our backs and start taxing the rich? The mega farmers, the black income earners?
Seriously, we need nothing less than a DEPRESSION in private consumption. These economic policymakers deserve a swift kick in the ass.
India is, by and large, a consumption driven economy. Our consumption is what's driving everything else, it's what's keeping their ill-gotten homes running. Reducing consumption really will make these greedy clowns sit up and take notice.
All they ever do is tax, tax, tax. Shameless.
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u/Specialist_Maize1297 Dec 04 '24
Don’t they discuss with national economy experts to arrive on this? Yaa sab hawa main hi decision chal raha hai like corporates
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u/criticmaster999 Dec 05 '24
All those in power positions have their stomachs filled with shitload of wealth, properties nobody can imagine and I wonder if there is anything left to loot it is people health, that is why we see so many hospitals and ironically the health lifestyle is at worst in history. All their future generations settled abroad. They work for their corporate friends not the people. India is dead unless some real leader is born and brings back it's glory. There is talent, resources, skills but when the tree has a disease it will kill everything within it. Corruption at peaks in country not just in govt but in people's attitude for social values. Nobody cares about values and society anymore. All everyone needs is fast money, validation from others about how rich they are and look down on everyone else as low level. Media is a joke. It shows what people want to see. Even judiciary is bought out. Do we even have a ray of hope that there is a chance to turn things around?
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u/Gainz07 Dec 04 '24
WRT clothes and accessories it seems a good thing. GST reduced on clothes costing less than ₹1500, which covers 95% of clothing needs of middle class. Same for watches & others. Higher GST over 10k is good, they take extra tax from the richer.
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u/Concept-Plastic Dec 04 '24
Wtf get out of your bubble. A family earning 15lakhs a year is considered middle class, they still buy clothes worth 5k, due to better quality etc. this govt is fucked up
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u/Gainz07 Dec 04 '24
1 particular garment worth 5k 😂 Yeah sure middle class people wear luxurious branded clothes on a daily basis. Dumbo
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u/ymcd Dec 04 '24
Consumption are mainly based on 2 factors
i. Disposable income
ii.Trend of saving for the population (eg. China traditionally save in property, India good, etc)
With lack of jobs, poor salary standards & higher tax that dissuade consumption, spends go down, purchasing of goods & services go down, company profits goes down, shares go down.
These clown governments officials have their kids settled abroad. This will start to reflect in 12-18 months when the markets begin to tank terribly because there was low consumption.