hi everybody if you check the iphone professional max rates in india it will certainly cost approximately 1.3 lakh rupees if you get the very same phone in the us it will certainly cost you roughly 81 000 rupees in canada it will set you back about 90 000 rupees in australia it will cost approximately 1 lakh rupees so why is it that apple iphone costs in india are much higher than what it is in developed nations the solution exists somewhere in tax and i will describe the solution thoroughly somewhere along the video clip yet on this video clip we are going to understand concerning tax basically and also there are 3 particular points that we will discuss firstly why do we need a taxation in the very first place why can'' t federal government provide things for free 2nd vital factor that why is it that in some countries people pay a whole lot of straight tax obligations for instance in india we are paying excess amount of direct tax obligations as well as indirect tax obligations as well as in some countries as an example monaco dubai there is absolutely no percent direct revenue tax 3rd and also lastly can we transfer to a version in india where people are paying zero percent straight income tax so prior to i discuss the video clip do let me understand in the comment box what do you think about this inquiry that individuals in india can be actually pay no percent income tax is that possible why why not think of it also a big yell out to our enrollers for today which is tax obligation friend it is a superb end-to-end solution for optimizing your income tax return you can go and also speak to individuals from tax pals in order to submit reply to your notices or submitting your gst returns currently obviously in india tax is high so maximizing your tax obligations would certainly make a lot of feeling so check the links in the summary box there is a special code that will certainly offer you about a 35 discount rate on tax obligation pal solutions so allow us get the discussion started and firstly allow us comprehend why is it that federal governments need to impose tax obligations the solution is extremely straightforward that they need to give a great deal of services yet let us recognize a little bit of historical context and also philosophical context to it it'' s a really fascinating conversation so there was a 16th century thinker called as thomas hopes as well as he provided an idea called as the law of nature according to which what essentially occurs was that visualize a hypothetical globe that federal governments are not there after that individuals would be killing each various other they will be keeping up machetes or whatever weapon they can grab their hand on and they will certainly live in a state of lawlessness as well as they will certainly simply expropriate home vigorously from each various other so words of the day today is expropriate allow me know what does that mean so essentially this will be a state of lawlessness and nobody would wish to reside in such a society so what winds up taking place is or what a rational remedy to this issue is that individuals must obtain together as well as they should offer a part of their liberty to a greater authority called as the government now in order to offer basic public solutions like policing maintaining of roadways bridges and also taking on all these centers government will certainly need to spend money and also exactly how would certainly the government raise cash or get that cash by tiring individuals so this is the initial part of the formula as to why we need a government and why we require to pay taxes to the federal government 2nd if we assess governance from a modern-day day lens after that what we will certainly find out is a financial idea called as disaster of commons so what is the definition of disaster of commons in very simple to recognize language it implies that nobody takes care of common products as an example if there is a park and there is no owner of that park after that that will certainly care for that park similarly if there is a roadway and also no one is the owner of that roadway after that why would any individual care for that road so in an economic situation there are a whole lot of things that are taken into consideration to be typical products which no one cares for as well as therefore we require the federal government and also they need to preserve it and for that reason we need to pay taxes so now comes the natural concern that alright terrific we need to pay tax obligations yet are all taxes of similar kinds the answer is no there are 3 particular kinds of taxes that are levied in the economic climate very very essential for you to recognize so the 3 tax obligation type are very first straight taxes these are income tax obligations that people that are working would typically pay in india if your earnings yearly income is greater than 5 lakh rupees then you could be paying substantial quantity of straight taxes 2nd group is called as indirect taxes in india we have something called as the gst everyone who is purchasing a packet of biscuit or everyone who is utilizing any type of solution in the economy is probably to pay some kind of gst and also everyone is paying it regardless of them gaining not gaining etc etc third group is the most misinterpreted kind this is called as the invisible tax and also you are seeing this play out in 2022.
Now what is the meaning of undetectable tax it just implies that everyone is paying as a result of the fact that the federal government has actually taken way too much financial obligation so they need to repay a great deal of loans so they publish a great deal of cash it indirectly hits you or there is high inflation in the economy or some macroeconomic issue so this becomes an indirect tax for you a classic situation in point once more is 2022 you are seeing the circumstance in the us that the rising cost of living rate is someplace between eight to twelve percent in india it is around eight percent yet the fd rates are approximately six percent so exactly how much cash you are shedding yearly nearly two percent so the issue is that this comes to be an indirect tax of at least two percent that we are paying so these are three kinds of taxes that are normally levied whether we are seeing it or otherwise seeing it we can be deeply annoyed regarding it however the fact of the matter is that primary federal government needs money in order to run the economic climate why due to the fact that they have to take care of the typical good if government is neglecting these items after that the economic climate would certainly not function and also for that they require to impose taxes and also that is exactly what numerous governments do yet they have different various models to do it so let me describe two extremely interesting models here regarding just how governments are elevating cash in their economy to run their entire country so the first design i call it the cayman island version very intriguing truth here is below is the populace of cayman island it is approximately 60 000 people and here is the number of registered firms in cayman island so for each one resident there are two companies that are signed up in cayman island currently you will state that all right why is this the situation and why needs to i even trouble you should bother due to the fact that people in cayman island pay absolutely no percent straight revenue taxes and exactly how are they able to do it just due to the fact that of the reality that every firm that gets signed up in cayman island it has to pay a service cost it needs to pay a setup cost so to state in order to register the business as well as a maintenance cost so the government there finishes up making crazy amount of cash so one can say that cayman island is a tax obligation sanctuary normal citizens do not pay direct revenue tax obligations their federal government still makes insane quantity of cash so once more just to give you some context in order to sign up particular sort of firms in cayman island you might have to spend approximately fifty thousand bucks on top of that yearly upkeep cost is approximately 8 hundred dollars so to reduce the lengthy tale short the government is making insane quantity of money not by tiring citizens directly but by checking out various other ways of creating profits so because of this they are able to run their economic climate very efficiently currently comes the second model which is called as natural resources design uae or center eastern countries are a classic situation you might have heard from your loved ones from your pals who are working in dubai that they pay no percent earnings tax a side note below when i was examining at insead there was a great deal of need to operate in dubai what was the primary factor that if you go deal with mckinsey in dubai you as an expatriate also would certainly have to pay absolutely no percent earnings tax obligation which is substantial expense saving because consider it by doing this that if you are functioning at mckinsey in india you might need to pay 30 straight earnings tax but if you are doing the very same job in dubai you need to pay no percent tax obligation so why would you not wish to work in dubai or other middle eastern locations so currently comes the all-natural concern that why is it that between east the tax obligations are zero in a number of nations the factor right here is that these countries regulate a huge natural resource which is oil they offer this oil to obtain cash now they are able to service the economic situation by marketing public goods why public goods since when a country sells all-natural resources that do these natural resources belong to unless you are running some federal government in uttar pradesh or bihar public good comes from the public this is simply a joke please take it as a joke wear'' t make it a major debate okay carrying on so to reduce the long tale short lots of countries in cayman island monaco uae all these nations enforce absolutely no percent direct tax on its residents why since they have the ability to obtain incomes or earn profits with other sources so this brings us to an all-natural question that hey what concerning circumstance in india can we ever before end up being like a tax place or can we in fact end up being a nation that has a whole lot of natural deposits as well as i as a citizen will certainly appreciate my life being 0 tax obligation sadly the answer is no primarily we are an internet importer of things not a net merchant of things so there is a huge profession deficiency that we run in terms of importing things especially oil so we are not an all-natural source rich nation of course there are some assets where we are web exporters but when it pertains to internet web asset imports minus exports we are a net importer so we are not a normally commodity rich nation so this is problem one issue second can we transform india into a tax obligation haven that'' s a really intriguing argument possibly i ' ll make a separate video on that particular subject however to reduce the long story short making a country tax obligation haven is very dangerous game and also a nation need to just play that video game when its internal entrepreneurial community is not that solid as an example when it comes to cayman island based place if you are a business owner in cayman island as well as you are attempting to export your things in the u.s as well as there is some panga taking place between like us and also cayman island then what will take place after that the u.s is going to impose some sanctions on cayman island-based entrepreneurs which will certainly squash their economic climate in an instant but because cayman island itself does not have a really solid inner entrepreneurial community they put on'' t care they just simply claim that you recognize what come open your firms below on our island we will certainly take treatment of everything what is u.s mosting likely to do u.s can'' t quit the circulation of entrepreneurs who desire to register their business in cayman island they can'' t stop it so yeah that is just how their economy function yet in india india is a far more complex economic climate we have a really huge population so it comes to be a massive difficulty for us to perform such things third and lastly offered india'' s big populace our government needs to run financial deficiency what it merely means is that our federal government requires to obtain a great deal of money in order to serve the people in the economy and also as an outcome we go on taking an increasing number of debt with every death year so this brings us to a really basic conversation that our tax is ever mosting likely to most likely to no in india the solution probably is a no a minimum of for a considerable future at least in our generation it doesn'' t appear that means why is that because now our federal government is heavily dependent on taxation based revenue as its income stream so here is how federal government gains one rupee and you can categorically see simply take a look at non-tax profits it comprises just 9 percent of the whole earnings of the government so remainder of the majority of the cash depends on what it regrettably depends on tax so currently comes the all-natural question that alright penalty we have to pay taxes if you are living in india however that should be paying that taxes can you evaluate different countries and speak a little bit about that i am tired of paying taxes so is there some solution for me so all right so allow us quickly understand this problem too so in extremely straightforward terms there are three categories of people that can pay tax in an economic climate first would be taken into consideration as the abundant course people for instance if you go to scandinavian countries it is the abundant working class that winds up paying taxes if you consider this abundant classification there would be 2 sub-categories below one would be people that run services and supply a great deal of employment possibility as well as 2nd would be premium paying task individuals now in scandinavia there is a reason that there is a lot of straight tax in some of the countries it depends on even 55 percent why is that due to the fact that a great deal of individuals have high-end paying tasks so they can paying really extremely high tax obligations in scandinavian countries individuals not just prosper by working they likewise come to be abundant by seeking these high-end job opportunity by functioning with international firms by entering into those factor five percent greatest paying tasks so therefore they have the ability to strain a higher tax base and also supply better return on tax obligations currently what is indicated by return on taxes for instance you could have learnt through your friends or if you would have lived or checked out scandinavian nations you would certainly have seen exceptional social protection exceptional wellness care clean roadways what not cost-free education and learning so that in easy terms is called as return on tax obligations government bills a great deal of tax obligations provides a great deal of solutions why are they able to do it due to the fact that a great deal of people have actually created wealth they are able to pay tax obligations their tax obligation base is extremely very vast which model of straining the abundant works wonderfully well for scandinavian countries now comes the 2nd category of people that pay taxes as well as below i will chat regarding 2 countries india as well as china so in india in china it is however the middle course as well as the bad class that pays a lot of tax why is that the situation i had actually made a separate video you can go and also check it out it was regarding why the center course pays a lot tax obligation in india yet i will certainly still provide a brief recap below among the essential reasons that the center course in india gets crushed is very easy because we don'' t have high end paying tasks in india there are really very few premium paying tasks in india approximately 60 percent of our population is associated with agriculture and the income that they produce is really extremely much less they just add 15 to our whole gdp consequently the scenario in india is such that only one percent individuals are almost paying straight earnings tax obligations very same is the scenario in china as well as you can take an appearance at this certain bit below that in china likewise they exhaust a great deal on their center class and lower middle class why is that the situation due to the fact that you might naturally ask me that hey why can'' t they enforce a great deal of tax obligations on these business individuals the reason is that they always have cayman island to go to if a country like india or china enforce crazy quantity of tax on rich business people they will run to cayman island right as well as check out some tax obligation haven they have 100 technicalities that they can find so consequently the middle class in china as well as india gets crushed currently you could say that fine there is another category of people which is poor individuals why can'' t they pay tax obligations merely since of the truth that they have no cash to pay taxes now here is a very fast two decades research that was done and also you can have a look at wealth inequality in india over the last twenty years so i am not discussing current government okay i'' ll not give disclaimer you understand what i'' m attempting to claim so kindly do not go ballistic on the remark section this is not a criticism against any type of details government so have a look at wide range inequality in india and also you will plainly see that this stands for the wealth had by the lower 50 it has hardly moved in the last a number of years actually it has only come down the riches inequality has only enhanced with time so this brings us to the last section that is there a service so there are four specific factors that i'' m mosting likely to discuss firstly we ought to broaden the tax base as an example a whole lot of farmers in india that are abundant they do not pay taxes they should be brought under the tax paying ambit in addition there are a whole lot of hawkers in india who are making insane quantity of cash but once again they do not pay any type of tax obligations singaporean federal government has actually done a fantastic point that they have actually organized the unorganized sector which is the hawker in the type of hawker centers so this is what a hawker center in singapore looks like it is completely controlled by the federal government and every hawker really winds up paying tax obligations so this is a basic option that can be performed point second is to obtain even more individuals into the workforce the labor force participation of females in india is extremely very reduced actually it is so dismal so depressing that we drop listed below bangladesh when it comes to female workforce engagement i will probably make a different video on this subject if there suffices interest but indeed bringing more people into the labor force will certainly broaden our tax obligation base as well as will reduce the tax burden on common citizens third factor is called as the iphone tax or directional tax this brings me to the concern that i had actually asked in the beginning which was around apples iphone why are apples iphone more pricey in india the factor is that this is a sort of a directional tax directional tax simply indicates that people that are acquiring iphones in india these people can pay for a great deal of points so they are exclusive course so to state so most likely they must be paying more money in order to obtain these centers in india am i satisfied concerning it the solution is no i myself am firing this video clip from iphone that i have actually purchased in india so i myself have paid costs rates on this iphone a great deal of counter debates are considered that you know what iphones are imported from china this that alright so it is manufactured in china it also gets imported in u.s canada all those locations however why is it that taxes are greater due to the fact that it'' s a segmental or directional tax these sort of tax obligations are imposed by a great deal of federal governments for instance if you think about singapore in singapore the cost of owning an auto the very same cars and truck that you will purchase in the u.s it will certainly cost 5x to have in singapore why because the singapore government is making use of a directional tax obligation to penalize people that are having an automobile similarly the indian federal government desire to penalize individuals who are possessing an apple iphone or deluxe phones fourth and final point which is a capitalist point is that honestly tax trouble in india is not a tax issue it'' s a riches creation trouble if sufficient people in india are abundant and if they are wealthy after that we also can create really high effect on our tax obligations extremely comparable to how scandinavian nations are doing i hope you enjoyed the video please press the like button and also do inspect the links in the description box thank you so much and also i will certainly see you quickly you
