Many US companies don’t pay corporate tax

Companies are good at lobbying—and American politicians are more than willing to amend the tax code.

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William Hill Bingo

5 years ago

my thoughts exactly, sky!

Sky Bingo

5 years ago

i agree lol... idk why this is news.

Website Design Dundee

6 years ago

This is news? lol

Papandreou: My only objective is to ‘save Greece’

Greeks are baying for his blood. Someone should give him a wake-up call.

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Gear up for petrol at Rs200/litre by 2015 or before. And pray that your motor mechanic picks up electric, solar technology

A few manufacturers are thinking of dabbling in electric- and solar-powered cars. But they have miles to go to pick up the knowhow. A dropping rupee, rising crude prices and high inflation will jack up fuel prices even more

The loudest complaints I got this morning about the latest petrol price increase is from friends in the retail fuel business. Since I have already written about this business of fuel price increases in the past, there is no real fresh input—except for what one of my friends said—do a one-time increase to, say, Rs200 a litre and hold that price for as long as feasible so that all of us can plan ahead. If it kills the petrol automobile industry, then so be it, and hopefully something better will emerge from the ashes.
 
A bit drastic, but his point is that diesel sales are also coming down in and around Delhi/NCR, because despite the subsidy, it is not all that affordable either. And the impact of higher petrol prices is certainly visible—fewer two-wheelers on the road and packed Metro trains throughout the day. Let us not even talk about the level of atmospheric pollution in Delhi/NCR lately—often, the only place you can get clean filtered air is inside your car. Which still needs an air-conditioner, despite it being early November.
 
In the midst of this comes some interesting news—the battery powered ‘Eeko’ from Maruti Suzuki, first shown during the Commonwealth Games last year, is close to ready for commercial launch. Powered by lithium-ion batteries, it is said to have a range of between 100 and 140 kilometres depending on air-conditioner on or not—and could be even more if the operator chooses to fix a small mobile generator set inside the van.
 
In addition, it will be up to the owner/operator to install suitable photovoltaic solar-panels on the roof for ‘trickle’ charging, while parked during the day, from ambient lights. Maruti Suzuki, of course, is not making any official announcements on this product—but it is understood that the ‘Eeko Charge’ as it has been nicknamed, has frozen specifications and intensive trials have already been conducted. Now if only they could figure out what to do with the investments made in engine plants and petrol-operated cars, maybe they would pull their finger out, and soon.
 
Likewise, some progress is also being reported from the Tata Motors stable on their battery powered TATA ACE as well as the Indica. M&M has indicated that the 4-door 4-seater Mahindra Reva NXR should be available by January 2012. And General Motors, now that things have stabilised, is taking forward the Chevrolet Spark (sold in India as the Beat) electric vehicle project is currently on "demonstration trials".
 
Maybe they are all waiting for petrol prices to rise further, before launching these products for the market, in which case they may not have to wait too long. A dropping rupee, rising crude prices and high inflation should do that trick. Alternately, they are waiting for government subsidies and other benefits for this sort of vehicle.
 
But if you ask deeper questions of the “don’t quote us” sort, then the truth emerges—what happens to our investments in engine manufacturing investments and research & development costs therein, how do we recover them if everybody starts going for alternative and cleaner options? What happens to our suppliers, for example, those who will be out of work if this happens?
 
Every which way, they better move fast, because one garage owner I know has been picking up old Premier Padminis at scrap value and is currently conducting tests on his electric motor plus gen-set with batteries, to manufacture (or cobble together) a kind of home-made jugaad car already. And from the newspaper delivery person to the food home delivery service, one spots more and more electric battery two- and three-wheelers on Delhi’s roads lately, which also I have reported in the past.
 
Are the “modern” cars and bikes being sold in India lately about to become as Jurassic as the Ambassadors and Premiers of yesterday, to be replaced by battery operated jugaads, which can only get better every day?
 
This just might be the case. The Rs200/litre rate is not far away. One educated guess places it at well before 2015—so if you buy a car today, then that’s what the fuel is going to cost when you are about half-way through its useful life.

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COMMENTS

Krishnaraj Rao

6 years ago

Dear Veeresh,

You say, "Since I have already written about this business of fuel price increases in the past, there is no real fresh input—except for what one of my friends said—do a one-time increase to, say, Rs200 a litre and hold that price for as long as feasible so that all of us can plan ahead. If it kills the petrol automobile industry, then so be it, and hopefully something better will emerge from the ashes."

I hope you are saying this without irony. Because I agree with every word of it. Although I enjoy driving my car, I have no hesitation in saying that the private automobile industry is the bane of the earth.

This industry is thriving because it is heavily subsidized by government, society and the environment. And we, the consumers, are like junkies hooked on petrol. Ours is an entire civilization hooked on the mood enhancing drug of petrol!

The sooner the private automobile industry dies, the better for planet earth. Of course there will be withdrawal symptoms, but that is only in the fitness of things.

Warm Regards,
Krish
98215 88115

REPLY

sucheta

In Reply to Krishnaraj Rao 6 years ago

Couldn't agree more with Krishnaraj. we would all happily give up cars unless we need them for transport, or when parents are around or shopping need.
We are fighting hard for a shuttle to the airport exactly for this. Mumbai is the only major city in the world that does not have a shuttle from and to the airport going out to three directions to colaba and the central and western suburbs.
cheers

malQ

In Reply to Krishnaraj Rao 6 years ago

Dear Mr. Rao, thank you for writing in, and I did write as well as mean this without too much irony.

The issue of private transportation of some sort will always remain, but we must do something as a Nation for alternate technologies as well as public transport.

Humbly submitted, but it is a reflection of the times that the ongoing IITF at Pragati Maidan in Delhi has now no provision for general parking of private cars - the only access will be by bus, Metro and shuttles, as well as taxiis/autos.

As a matter of fact, I know more than a few industry leaders who are planning to set an example by heading there by public transport.

Regards/vm

ravi

6 years ago

vm, govt. itself is a whore, not oil cos. they are hungry for money. all the money of india wont satiate them. they are pereniely sick.

all the inteligentia of india have disappeared or what?

REPLY

shadi katyal

In Reply to ravi 6 years ago

It is a shame that very few writrs touch the subject but show their furstrations and thus such abusive letters.
We must face the facts tht we import oil and GOI does taxx it. The import duty can be lowered but it is revenue and needed to run the most bloated govt with multiple un wated Ministeries and thousands of Babus.
Petrol prices in USA on petrol pump vary every day and go up and down. More up than down. Last week petrol was $3.29 a gallon and today it is $3.37. I has been as high as $3.79. So it is a commodity and thus traded and treated like that.
In India we have many multiple tax system and can some one put light on how much different taxes are?

R Nandy

In Reply to shadi katyal 6 years ago

The state and central taxes are 48% + for petrol in Karnataka.It is comparatively lesser in states like Kerala .The Centre charges a fixed excise tax of Rs 14.35 per litre, and customs duty of 7.5 per cent on crude oil.The sales tax is 25%.So,the state actually gains in taxes when the crude price moves up.The corrupt and shameless BJP Gov of Karnataka has not done anything to aleviate this problem by reducing the sales tax or making it fixed.The Gov of Kerala to their credit had reduced the sales tax to give relief to the consumers.

Secondly,there has been some comments here regarding the subsidy on Petrol.It should clearly be understood that petrol subsidy is nothing but an accounting trick and is only notional.Whatever few rupees of so called subsidy is given by the Oil marketing companies ,it is taken back by the goverment in the huge taxes.

malq

In Reply to R Nandy 6 years ago

Dear R. Nandy ji, thank you for writing in, and especially the concept of subsidy rightly being an accounting trick.

However, the downstream effect is not an accounting trick, and that's also what I wanted to get across. Nor is there a real trickle down effect or benefit to the "common man".

Humbly submitted/vm

jak

6 years ago

this rotten govt. will make 200 within 1 year. it should be kicked out as it has no idea of anything except to stick to power by hook or crook, promote sycopahncy, corruption, black money and all the evils.

Govind Shanbhag

6 years ago

Veeresh Sir - The dwindling natural resource is going to be too scarce in the year to come and we all put together have to conserve this resources. Some of the suggestions are (1) All Bank Officers and some corporate executives are being reimbursed for 100 litres of petrol per month either by way of self declaration and/or by producing receipts which are available with petrom pump the condition for such reimbursement you should own a vehicle. Although petrol prices have been steadily going up, the number of vehicles on the road have not come down. Banks/corporates should not put a condition that vehicle is a must -, should reimburse based on self declaration.
2. If any dignitary right from President to chhota neta visits, there are number of govt. vehicles follow up spending tax payers money for petrol. There should be control on this.
3. Go to any picnic spot, some famous temples and/or some important landmark, you will find at least 40% are government vehicles, is there any control for use of vehicle for private use ?
4. Iam told petrol is sold at subsidied road - why should this subsidy be given to high end vehicles such BMW, etc.
5. There should be restrictions for no.of vehicles per household. If this restriction is broken - no subsided petrol/diesel and in fact they should be taxed for adding to congestion,.
6. No.of politicians whether deserved or not have been given security. Why should we pay for their security as they have chosen it on their own. If they feel unsecured, let them employ private guard pay for it or leave the job,.

REPLY

malq

In Reply to Govind Shanbhag 6 years ago

Dear Shanbag ji, thank you for writing in. Couldn't agree more with what you say. Luckily, we have the power of the internet now to spread our views further, so please do distribute your comments as well as this article further?

Our oil companies HAVE to start thinking in the larger perspective as energy companies, and unless we, the users, push them in that direction, it will not happen.

Humbly submitted/vm

Vaibhav G Dhoka

6 years ago

Does GOI wants Indian public to invest only in OIL companies stock to share little inflationary rise.A cunning joke on common man.

REPLY

malq

In Reply to Vaibhav G Dhoka 6 years ago

Dear Vaibhav ji, thank you for writing in.

I think more of us should let the Indian Government know that they need to motivate the oil companies in India to think of National interest rather than oil commodity trader's interest. Please use the internet to spread your views, your response, and this article. before it is too late.

Thank you, and humbly submitted/vm

Hari

6 years ago

BUNCH OF JOKERS & CRONIES WITH NO HEAD & TAIL OF RUNNING A COUNTRY OR AN ECONOMY ARE RUNNING THE SHOW & RUINING LIVES OF BILLION+ SYSTEMATICALLY.

IN THE WORLD ORDER THERE SHOULD BE BETTER WAYS OF MAKING & MANAGING THINGS BETTER. BUT POLITICIANS & POLITICAL PARTIES HAVE BEEN EMPOWERED TO BE MASTERS OF OUR LIVES IN THE GARD OF A FARCE-O-CRACY CALLED DEMOCRACY!

AND THE EVER-HUNGRY-FOR-TAXES INDIAN GOVT. RUN BY CON-(DIS)GRESS PARTY WILL TAX YOU FOR EVEN BREATHING IN FUTURE!

GOVT. ITSELF IS WASTING FUEL TO THE TUNE OF 35% ACROSS THE COUNTRY IN VARIOUS WAYS.

INTELLIGENT PEOPLE SHOULD TAKE OVER THE COUNTRY FROM THESE JOKERS & BAFOONS BEFORE PETROL IS 200/LITRE!

REPLY

malQ

In Reply to Hari 6 years ago

Thank you for writing in, Hari ji (though we could dispense with the ALLCAPS, don't you think?) and please use the internet to spread the good word, your response and this article.

Yes, we need to motivate the government to step in and make these arrogant oil companies in India think about National Interest - start them thinking as energy companies instead of petroleum whores.

Humbly submitted/vm

Anon

In Reply to Hari 6 years ago

With you Hari. Nailed it.

Shadi Katyal

6 years ago

What would it make difference if the Oil prices keep going up.One has to consider inflation and for us Indians the taxes.
It is easy said than yet to achieve the goal of either electric or solar power cars.Thee are already many cars on the roads in USA and Europe which are using battery plus petrol to run but due to limitation of total KM,and price are not yet become very common.
For us in India with no R &D in this issue we have to depend on West and Japan. After all almost all our technology is from west and the only exception is Tata doing its own research.
There is also talk of Natural Gas cars and all these new technologies will require infrastructure to meet the needs of the car owners.
We need roads and infrastructure for such cars.

REPLY

malq

In Reply to Shadi Katyal 6 years ago

Further the other responses, katyal ji, here is an article linking to the progress made by an Indian company (Tata Motors) on the diesel/hybrid vehicle concept:- http://www.greencarreports.com/news/1067... . . . please read and forward/distribute . . .

shadi katyal

In Reply to malq 6 years ago

I thank you for the link to Tata Motor Range Rover in UK. There is no doubt that TATA's are the only Firm which has its own R&D in Puna.
Such cars in India will not work due to lack of proper Power supply. A nation cannot live on power cuts and thousand of generators running and poulating the atmosphere.
We talk a lot about environment but does the use of diesel in generators not give CO2??
This is not a new problem but loss of power in transmission also is a big problem

malQ

In Reply to Shadi Katyal 6 years ago

Katyal ji, thank you for writing in, and look forward to your help in taking this forward by spreading the good word. Only if people stand up and demand solutions from the Government will they move - so please use the power of Internet to spredy your views further.

Regards/vm

Uppaimappla

6 years ago

Perhaps, just perhaps, oil may plummet to $20 instead of rising to $200. There are some strange initiatives in cold fusion field which gives some hope. The latest is the Italian scientist Andrea Rossi's "energy catalyser" or E-Cat. Let us watch for developments.

REPLY

Sachin Purohit

In Reply to Uppaimappla 6 years ago

Perhaps, just perhaps, my age may plummet to 18 years from the current 37 .. ;-)

Udit C

6 years ago

Good expose on eVs at various stages of completion in India. Good to learn of the endeavors, but will India's driving public adapt to this or wait for some extraneous force?

Electric vehicles are nothing new and are about as old as petrol cars. A 1902 model runabout was regularly exhibited at various vintage car events. In factories, electric platform-trucks, mobile hoists and fork-lifts are used regularly and likewise in mines, heavy electric vehicles run especially where engines are a safety hazard.

More than our mechanics learning about electronic drives and motors, we need to worry about the rest of us adapting to this technology. Even a progressive society like Europe has been very rigid on what cars and driving are meant to be.

eVs have been used for long in UK (for milk and mail vans etc.) but it is just now in the wake of road tax benefits and availability of battery-charging points in several areas that electric cars like our g-Wiz are catching up.

While electric vehicles are quite successful in regular-use and in controlled environments, their success on variable-use and chaotic road conditions will need to be seen with keen interest. Range is a critical issue.

Even though this will shift the fuel demand from petroleum to coal (which drives most of our power plants) there will be practically no alternative. Import of fuels will be as uneconomical as import of technology and capital equipment or materials in this ever-sinking-Rupee regime.

As for harnessing solar power, this is really a far cry. We are yet to see panels converting more than 15-20% of the sun's radiation. Suitable sunlight for any viable use is availed barely for 4-6 hours in India. And lastly, coating an entire cars surface with any photovoltaic material will barely yield a tenth of a its needed HP.

REPLY

udit c

In Reply to Udit C 6 years ago

Direct Hydrogen Combustion is also a clean alternative, which involves minimal changes in our vehicles. Institutions like the IT-BHU are experimenting on this.

Sachin Purohit

In Reply to udit c 6 years ago

Hydrogen combustion is not a great idea. Firstly there isn't too much of free hydrogen available. To chemically produce hydrogen, one may have to do electrolysis of water, thereby pour the same amount of energy to produce hydrogen as the energy being sought from combustion of hydrogen. Also, the output of hydrogen combustion is water. Liquid water will lead to more green-house effect than CO2 emissions. The natural water in the form of oceans and rivers have always trapped same amount of heat during the day-time. No additional H2O was produced to trap more. What got produced additionally post-Industrial revolution was more and more CO2 - greenhouse gas, no doubt. But hydrogen combustion will lead to more greenhouse liquid - water!

malq

In Reply to udit c 6 years ago

Thank you, Udit C ji, for writing in, and appreciate your taking time out to place some more facts on the table.

In this article, I was trying to get across more the fact that some "home-made" jugaad solutions seem to be hitting the market, based solely on economic considerations relevant to the price of liquid fuels. While the manufacturers dither for whatever reasons.

As "jugaad" technologies move ahead, like they did when the internal combustion engine first arrived on the scene in the West, India has a chance to leapfrog the West if they time it correctly. With just a wee bit of help from governance - or being left alone to evolve organically.

Humbly submitted.

udit c

In Reply to malq 6 years ago

Sorry to miss the emphasis on home-spun technologies.

Jugaad seems to be about the only hope since it comes from the ones who need to use it. Our corporate sector is famous for carrying out fantastic R&D and shelving it in wait for a manna from heaven.

Lot of organisations including self-proclaimed financiers of SME and social-sector have hyped their support for innovation but little has come into the market.

Bureaucrats and politicians have no interest in anything not involving elephantine procurements. Industrialists seem to have lost their vision or drive somewhere during the liberalisation gig.

R Nandy

6 years ago

The Gov of India can give incentives in terms of lesser taxes for Hybrid vehicles whether imported or not.This
will also force other global manufacturers to introduce Hybrid vehicles in India.Many of them already have hybrid vehicles in developed countries.

A friend of mine staying in the US has a Toyota Prius hybrid which he got for INR 10 lac approx($20,000+). It gives a mileage of 21+ per liter of petrol. There is almost 50% fuel savings for a petrol vehicle. Secondly,it has a lesser Carbon footprint.The same vehicle in India costs 26 lac+.

REPLY

malQ

In Reply to R Nandy 6 years ago

Dear R Nandy ji, thank you for writing in.

Waiting for the government to do something may not be apt here. But something like the grey market computer and pirated software on which the infotech revolution in India was founded, is what I anticipate will happen - as long as governance does not throw a block.

Already all sorts of motors and batteries appear to be available, mainly of the "grey import from China" sort, so it is a question of time before the same product gets sort of standardised and then "assembled" in India and provided as kits for existing automobiles, mini trucks, 3-wheelers, etc. Only thing is, these are going to be on the road, and subject to all sorts of rules and regulations.

Humbly submitted/vm

malq

6 years ago

I had an even better idea after this was published - devise a banking product which debits the customer's account 200/- for every litre of petrol or diesel purchased, pays the actual amount, and invests the balance in new-age alternate fuel technology companies. Multiple benefits to all concerned. Anybody game for this? Humbly submitted/vm

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