This Place is Taken

Saturday, October 29, 2016

Friday, October 28, 2016

Taxed Out



I was recently on holiday in Australia. While we stayed with AirBnb for most of the trip, and cooked up our own food, occasionally, we did eat from out. There was a tonne of Asian cuisine restuarants sprinkled all over the country. But what surprised me more than the range of the food available, was the cost. It was not that expensive. Sure,it was all dollars,  and we Indians tend to convert everything to rupees…  but there were lot of options for low cost meals too. And I think the main reason the cost was low was because of low taxing.
I repeatedly kept noticing that whatever we bought, wherver we ate, the tax calculated on the service was never more than 10% ! That’s it. It was just under 10% for clothing, at restuarants, and even domestic plane tickets. Amazing !
If you eat out in India at any restuarant, the taxes will come to 20% ! The bill will nicely break up this into three different taxes. There is the 14.5 % VAT. Then 5.6 % service tax. Then the government’s swach barath and kissan cess, each of .2%.  Now the new amount is 20% more than the original bill !  For a dinner for four people, you will have to pay for an absent fifth !  Then the restuarant may charge you a service charge of 10%, and they can charge whatever they want.  And if there is any alcohol, there will be an additional 20% tax on only that.
What the hell is happening ? If a country like Australia can run itself with a 10% VAT/GST, why does India need to charge 20% tax ? This might go up to 30% too. And we have more people, and therefore more people eating out on any given day. The same goes for purchases and online services .
Surely the country has no shortage of income. What they need to fix is what they are doing with all that income.
Bon Apetit ! And Happy Diwali !

Tuesday, October 25, 2016

India Flying

 

 

I didn't believe it, when Air India got into "Breaking News" announcing they made a profit. Because that is unbelievable. But then they did it again when they set a supposed "world record" for flying the longest non-stop flight. The news was first reported on Flightradar, and everyone else has simply copied over the content and reported it verbatim. And with the Indian government's new plan to make flying cheaper and affordable to Indians under their Udaan program, the focus is back on flying and planes.

Apparently, the government plans to cap the cost of 1-hour domestic flights to a certain amount. This will make it more affordable to the commonfolk (mango-men). But then I recalled reading another article which said that India already has the lowest prices for flying domestic !

Research by Kiwi.com, an online flight comparison site, states that the average cost per 100km to fly domestic in India is 3.25 USD !! And the low cost rate is actually lesser at 2.27 USD. And yes, currently that is the cheapest in the world. The most expensive country to fly is...UAE, with a rate of 105 USD per 100 kms. That’s about 50 times costlier.

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Well this news changes everything we thought about flying in India. On one side, flyers kept complaining of hidden charges and 'convenience' fees on their flight tickets. On the other side, the airline companies complained that the cost of aviation fuel was extremely high, and that they were simply passing over that cost to the end customer, the passenger. So airline companies in India have been already providing the cheapest flights in the world in spite of these huge costs.

I hope this trend continues. India already has the cheapest telephone rates in the world, which is a mainstay of today’s living. Flying is still a distant dream for most Indians and I hope a few more of them can take to the skies, before all the Indian Airline companies get taxed to the ground.

Sunday, October 16, 2016

Lounge Benefits

 

I have always seen these signs to Airport Lounges at domestic and international airports, and often heard reviews about these ‘exclusive’ places , and assumed these were for business and first class travellers. Imagine my surprise , when I figured out even coach travellers can access these lounges, if you have the right credit card. I don’t travel often, and always travel light and prepared. Airports in India are purposefully designed to confuse and make travellers wait in lines. So when I recently had to fly international, I decided to try out and airport lounge using my Priority Plus card I got from a new credit card. And I must say, it took a few problems off my plate rightaway.

There are only two lounges out of Bangalore airport, and the same service providers operate them in the domestic and international side of the airport. It is after security check (and immigration, for international flights) , and the entrances to both are next to each other. I decided to walk into the Plaza Premium lounge for my first time. They accept Mastercard, Visa , and a few other cards as well, providing complimentary service. Did not take any photos while I was there, as it was almost crowded, and felt the other patrons would not like it. And I could see why places like these are coveted.

Free Wifi, free food and soft drinks, lots of space to lounge around, and for  an additional price, alchohol, showers and spa ! For long distance and frequent travellers, its the last place to find some comfort. There was no long style buffet there, but enough food to choose from. And deserts , snacks and tea/coffee as well. I spent almost 2 hours in there without realizing how fast time went.

Ok, rant time. The usual complains about Indian Airports is that they let you in only if you bring a printout of your ticket and an Id card to be let in. Or the fact thay they let you board the plane only if they see that your carry in baggage has a security screened tag.  However, my number one complaint about airports in India is the lack of affordable food options. All the food and beverage stalls on the airside price their products exorbitantly high. There are cases where those suckers charge three digit rupee values for something as simple as idli vada. Even the basic water bottle is charged in that range. During my international travels, I have never seen such a practice anywhere else: Europe, Malaysia, Australia…everywhere the prices they charge airside is the same they charge anywhere else.  But in India, it is truly extortion.  And the flights too now charge extra for f&b onboard, and even check in luggage. In most countries, passengers are allowed to bring in some kinds of home prepared meals for consumption on the plane, but this too is not allowed in India. Only exception if it is baby food.

In such a suffocated travel space, these lounges come as a breath of fresh air. I really enjoyed my meal at the lounge. During my transfer at Kuala Lumpur, again I got into Plaza Lounge there. It was a relaxing experience, and with free breakfast.

Well now that I have bitten this bait, I am hooked. Looking forward to somemore such lounge experiences in the future.

Saturday, October 15, 2016

Bigger batteries pose bigger problems

 

Samsung’s PR disaster after recalling and replacing their Galaxy Note 7’s is all over the news. The blocking of the phone by the company is going to cost it money and users. But bigger batteries have always caused these kind of issues.

The story of Boeing’s disaster with the batteries on the huge 787 planes come to mind. There was a series of battery explosions in 2013 on 787 Dreamliners . You can watch this documentary to know more.