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?