MNC and Cost to common man

A couple of friends who had come to holiday recently got shocked when the saw the price of Hainekan tomoto sauce.

It was being sold at international prices but being prepared locally paying dirt cheap labout, input costs etc but priced at international rates.

When some folks called them up the answer they got from the manufacturer was shocking.

They said the service tax component was at 2% plus other taxes which jacked up the prices to 20%-30% so that it is brought on par with european standards (cost).

They also pointed out that sedens ( the same ones) sold in USA was 30%-40% cheaper than India because of these taxes.

The problem is the Government of India still considers things like soaps, sauces et all are still LUXURY GOODS.

Will the GOI wake up and spare the common man?

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9 Responses to MNC and Cost to common man

  1. Veena says:

    sunkadavana hatra kashta sukha heLo kathe aaytu…
    Well, these taxes really boost our bills so high, sometime I feel they form the major component.. my mobile bill specially πŸ˜‰

  2. M O H A N says:

    Veena,
    Yes things like service tax, Cash withdrawl tax are double,triple taxation demons.
    Do we need some bundhs and blood sheds for FM and PM to take note is the question.

  3. Veena says:

    Bundhs & Blood sheds are one of ways for it. sumne iri mohan..!
    ee naDuve, somebody starves to get the wishlists into approval.. It sounds more like the emotions work more than these judiciary or govt πŸ™‚

  4. M O H A N says:

    Veena,
    By order . Sumne iddie. Otherwise would have filed a PIL by now πŸ˜‰

    Your second statement is not understandble by me . swalpa light chelli.

  5. Veena says:

    Sumne iri for not giving ideas of Bundhs.. PIL ella file maadi nodoNa, atleast nimagenaadru sigbahudu :-).

    Andre yaaradru ooTa biTTu upavaasa maadthaare andre rajakaaraNigaLu juice togond barthaare, rather than one questions them from legal point of view antha.. so first case nalli emotional aagi dakkisikonda haage alva ?

  6. Veena
    Yes, what you say is a very good note.

  7. some body says:

    “Hainekan tomoto sauce”

    don’t tell me this is a local brand!

    we consumers should all understand that if we consume something that is not indigenous we will pay more for it (whether or not it is produced locally). i need to rephrase that – i meant indigenous in the sense as to where that product is native too, i am not questioning the antecedents of the ingredients of the sauce.

    hotte tumba pizza will definitely cost more – in india – than hotte tumba dose in usa/italy/france/… similarly, the situation reverses – believe me – in the usa! solution, when in usa/france/italy, eat what an american/french/italian would, and in des, eat what a “normal” desi would(i.e., not an nri or rnri desi who would/could probably eat like an american or italian or …!).

    – s.b.

  8. Welcome some body.
    The point is the brand may be international but the tomatoes,chillies are locally grown. Infact the people used to prepare,package, sell and consume are all in the same geography using local cost points but the pricing is international.
    Being roman in rome is NOT cheap any more as we see in other post of MTR getting sold out.

  9. some body says:

    “US authorities have asked steel tycoon Lakshmi Mittal’s group to sell a steel plant owned by them. This is to save the eastern US tin mill market from competition.”

    this – and the other headline i read recently about us government trying to armtwist the indian government to favor oracle’s acquisition of an indian company – is where i have a cow (‘blow a fuse’ for those who are not into americanisms).

    – s.b.

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