Writing this from the lobby of a good hotel in the city There are 3 types of people I see around me:
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.
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.
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.
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.
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.
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.
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.
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
I just checked six senses Who is paying 50k a night? Is it worth it? Isme to iPhone Aa jayega
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.
Tax saving isn’t the same as tax avoidance
You don’t really have such extreme tools at the disposal of salaried folk
True, the government isn’t incentivized. “Dont hate the player, hate the game” is spot on. It’s just what you see immediately around you.
We have done it. We contribute more to the country in taxes than corporates.
Let’s celebrate this historic and absolutely patriotic moment in our broken dreams, in our rented homes, in our over taxed cars, in our pond sized p...
My blood boils whenever politicians talk about giving freebies for votes. That's my tax money
For half of what you pay in Indian five star facilities you get amazing properties in Southeast Asia, Dubai
Exactly. These black money hoarders are pricing people out.
Just tell me kitna tax bharne wale ho....
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