MagicalHamster

Thoughts on staying in a luxury hotel, and income tax crossing corporate tax...

Writing this from the lobby of a good hotel in the city There are 3 types of people I see around me:

Foreigners (50%): Mostly on business travel. From various countries. Their economies and companies can afford to pay for this, it's nothing. Some with family, so maybe just traveling India in a luxury way.
People like me (20%): Indian corporate folks. Working at consulting/VC/MNCs etc. My company pays for this. But there's a deep cost. I work 12-14 hour days. I don't enjoy the hotel as much. We are pretty much slaves, by choice.
Indian business folk (30%): The thieves. They expense all of this to their business. Every expense to them is at a discount, because they can use it to show losses on their books, and get away with tax. They live better lives than us.

We are not them. Income tax crossing corporate tax data point really struck with me. Governments have started giving more freebies. We enjoy fewer public facilities. The only reason to be in India is that I love the friends and family here. But otherwise, as a salaried employee (as we all are), we should know that we're kind of being duped.

3mo ago

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ZippyMochi

Stealth3mo

It's a bit too much calling business owners thieves bro. Your hotel stay is paid for by a business too. That's risk and reward, plain and simple.

Besides, MSMEs in India hardly earn much in the first place to be able to pay a lot of tax. It's the top percentile that gets away with waivers of crores, while business owners like me can't even get an uncollateralized loan at a decent interest rate.

MagicalHamster

Stealth3mo

Not all of them, but many of them are The kind of businesses we are in, that fund our trips, do not show expenses to show losses. These are two very different types of businesses.

Sure, MSMEs in India that don't earn much, should not pay much taxes. Salaried employees in India, who don't earn much, should also not pay much taxes. But they do. Because it's easier to take from them.

I know of people much richer than my entire family who pay a fraction of the taxes I do, and pay in cash whenever they can.

Risk and reward? That's not related to the point I'm trying to make.

MagicalHamster

Stealth3mo

But I will add Just because the kind of companies we work in aren't incentivized to hide expenses for lower taxes... many do follow shady practices at some level.

Even the big ones. As an employee, you cannot.

DancingDonut

Stealth3mo

The bigger thieves are the bureaucrats - A class you forgot to include and would account for double digit % of the rooms booked.

They stay at taxpayer's expense, they get all sorts of luxuries and then they also don't do their jobs honestly. They are the system, and there's no way they can be weeded out unless they screw up in a massive way.

You missed the startup folks (founders, senior leadership). They also occupy five star rooms. They are also businesses that show losses and live better lives than corporates. They do it on VC money, so no one cares. But their wastage ensures that such hotels can keep prices artifically inflated.

Also, on your point #2. Corporate folks, especially those working at consulting companies. A large portion (double digit %) of their revenues are also government contracts. So, it's us taxpayers who are paying for consultants to live in five stars and give advice that has zero practical value. Yes they work 12-14 hours a day, but that doesn't justify why we bear such costs.

MagicalHamster

Stealth3mo

Bureaucrats yes. And their kin. Very true.

Startup folks - tbh, they begin staying at good hotels only at a very advanced stage. So they are in the minority (only so many Series C/D+ startups). Startup folks aren't even 5% of these hotels.

CosmicQuokka

Paralleldots3mo

Wait till you stay at some postcard / six senses / raffles / "luxury leisure resorts category" property, this anecdote of yours would fall flat, what you've observed only holds true for "business hotels" in cities.

Indians are happily splurging on rooms costing upwards of 30k nightly, albeit it might be one off event for some of the guests.

MagicalHamster

Stealth3mo

Stayed across most of these The only change at the ones you mentioned: 70% business folks, 30% employees (funded by companies for offsite, or getting married or something like that)

Indians are splurging on rooms (even salaried class), but it's 3-4 nights a year for us, even for the ones who can afford a lot

DancingDonut

Stealth3mo

I just checked six senses Who is paying 50k a night? Is it worth it? Isme to iPhone Aa jayega

QuirkyDumpling

Cred3mo

Calling business folks as thieves is BS, if you have easy loopholes as a salaried person to save taxes. I'm pretty sure you'll use it.

Don't hate the player, blame the game. If the govt wants they definitely can bring stricter laws for biz owners but that's also a very big chuck of their vote bank so no ruling govt will gonna do it it's a slow process.