By imposing these stupid,illogical taxes,levies on Corporates, they are killing the process of growth n development.
I don't understand why in India we encorage the inefficients(poverty,illiteracy etc.) by taxing the efficients.
Trust me if u and me stop working day n night we wil also be calssified as poor, why do we need to concentrate on poor people, we must motivate efficiency and discourage inefficiency
RE:RE:India is going back
by ASHOK on Jul 17, 2008 03:05 PM Permalink
abhijit >> You are spot ON, 200% Correct.
No one is trying to educate people (poor and illitrate) to produce less children.
Rather Race is to subsidise things for those poor, who have chosen to be poor by adopting to bad habbits (drinking / not working / gambling) producing children like animals and than demanding subsidies.
We all know oil is non renewable resource and once competition fot its use grows, its price will hit the roof.
I tell you today huge deisel is consumed in North India for running Diesel Gensets, and supplying Uninteruppted Electricity. But if Diesel subsidy is removed, people learn to live in free economy.
Or else go towrads SOLAR /WIND/Nuclear means, which ever is regionally acceptable.
RE:RE:RE:India is going back
by ASHOK on Jul 17, 2008 03:07 PM Permalink
Major Reason is POOR / ILLITRATE people are vote banks to Shoddy Politicians , especially non progressive Commies.
First of all a windfall tax is to be levied when a windfall occurs.Has a windfall occured?the answer is yes.It is noone's case that such a tax shd be levied always.So the USA withdrawal later example is meaningless. Secondly it is the argued that IT companies made a windfall and were not levied a windfall tax.But IT companies were not given a common propert resource like petroleum which belongs tto the Govt and the people. Thirdly contractual obligations are cited.You gave exploration rights with profit sharing on the assumption of certain oil prices.Upto 40 $ per Barrel this is fine.But beyond this it is a gross windfall.To argue that Govt gets a share via profit sharing is obtuse.You are the owner and you wish to be a beggar. Fourthly to cite capital costs for exploration as falling on the company,is plain ridiculous.You want a return on capital of 25% not 500%.This argument is plain ridiculuous.Who ever thought of this order of price increase? Fifthly the argument that WPT will discourage long term investment reveals a callous pro business view.We are talking of a crisis caused by the oil shock and the pain.Is it wrong to expect those who made such profits to share a bit of the pain.Noone is saying don't have profits but do not cash in on a windfall. The Ministry arguing the case against in this manner is a slap in the face of the common man.
RE:Re:5 reasons why windfall tax is right?
by ASHOK on Jul 17, 2008 01:58 PM Permalink
Today it looks Oil companies are making huge`profits. Which is true.
But just wait 6 months, everthing will become costly (i.e salary of people working in Oil Industry, cost of transportaion, cost of hotels,cost of drilling, cost of refinig etc.)
Than Oil industry profits will adjust down.
Experts who were paid 1000$ per day are demanding 1500$ per day. After levying WPT, how Govt wants to compensate all these overheads, which will be paid by Oil companies.
Concept of WPT is mooted by COMMIES who never had idea of economy.
Today system is BOOTSTRAPPED and you pull one end , you see the effect all over.
But for sure Commies never had an idea and that is how RUSSIA as well as CHINA sufferred.
Cuba /North Korea are other similar examples. Give me one example of a STATE controlled centralised economy working fine in this world and is COMMUNIST.
The only answer is in this solution to merge the oil psus & OMCs to create a giant, which can compete with the oil majors of the world & will have a pricing strength. Also it can bid for huge international companies or oil blocks. Time has come to merge these entities,with assurance to employees that their jobs will be secure.There's no other better time, when this, when Crude is near $140.Thx.
RE:Merge IOC,BPCL,HPCL,GAIL,ONGC & OIL
by ASHOK on Jul 17, 2008 02:14 PM Permalink
Merging and trying to get innovation never works. This is Commie thought, which failed. examples>> 1)Russian oil company was single largest company 9GUZPROM) but it fell flat as it could never innovate. 2) AEROFLOT was at one time having maximum flights taking off and landing. But its is now nowhere as compared to much more efficient airlines like SINGAPORE airline. 3)IBM grew like a giant and thought No one can break its monopoly in Computers, it was seriuosly challenged by much smaller APPLE computers and now IBM is no match to APPLE / Compaq / Dell /Lenovo in Laptop bussines and rather bowed out ant tried to reinvent itself, just to survive.
All the reasons cited above and in business dailies against windfall tax are vague and groundless.i think they are sponsored.
i do not see the reason why the stock procured at a far below rate by oil companies should earn super extraordinary profits (which will go into the pockets of these business men)which are actually a burden to common man in disguise. and majority corporates which earn huge profits are low on corporate social responsibility.
Above all these five reasons, RIL is owned by Ambani and these Media mamas will protect him at all costs.
Why should IOC HPCL BPCL bear all the brunt of populist politics. Why not private companies share the responsibility. What will happen if IOC HP BP start closing their bunks as they are listed companies and profit is their motives.
One fine day CAG will rap all these Govt companies for all these things.
Do you know that public sector refiners like HP,BP,IOC gets oil bond in the form of subsideries? Do you know that ONGC gives crude to these government refineries at a reduced rate while Reliance imports from Gulf at market rate.
RE:0th reason
by Milind Sovani on Jul 17, 2008 11:06 AM Permalink
But why Reliance closed all petrol pump in India? What about job loss? 20% oil must sale in India.
RE:0th reason
by sanjay Mor on Jul 17, 2008 01:06 PM Permalink
Reliance has closed those pumps , because they are not getting subsidy from the government for selling these fuels for the price lower than the cost. Therefore instade of selling the fuel in loss nthey closed the pumps. But you know that when government gives subsidy to these HP BP & IOC then that money goes from your/our pocket in the form of taxes?
RE:0th reason
by asad hgjkf on Jul 17, 2008 12:33 PM Permalink
The private companies run for profits, not for social work. The only reason for running a private company is generating profits for the share holders.
RE:0th reason
by ASHOK on Jul 17, 2008 02:29 PM Permalink
If private company runs with a loss, than there is already a builtin mechanism by the government to acquire it and sell it to someone else . BANKS/Financial institutes (Government owned), who give loans to private sector want adequate returns.
