Answer to a common useless pro-FDI argument given by SoMoKe-andhbhagats and other FDI-supporters is --- Why do you use FB and WhatsApp? They are also MNC-owners. . Answer is : Using FB / WA doesnt create repatriation burden. Using windows \ samsung creates a FIXED forex loss. Whereas FDI can cause potentially unlimited forex loss as GoI has to give dollars for all the profits that that foreign company earns. . The FDI is FDI as implemented by GoI and opposition i.e. SoMoKe. The existing rules of FDI as implemented by SoMoKe are . 1. FDI companies can ask for dollars for their profits after paying 40% income tax. . 2. And, sometimes, even than 40% tax is waived !!! eg Mauritius companies, Singapore companies etc dont pay any taxes on short/long capital gains and there are ways to convert operating profits into capital gains. . 3. And if Foreign company decides to keep profits inside India, then most often, they are given full tax exemption, which kills local businesses. . None of these argument apply when one uses FD, WhatsApp etc as they are free. . If you use western Windows or Mobile, then also, forex loss is fixed. It does NOT create any FUTURE liabilities of forex. Whereas when a foreign company is allowed inside India, it creates potentially unbounded forex liability for its future profits. . The Chinese in the beginning had the rule that foreign company can only repatriate profits equal to or less than its export earnings. IOW, the FDI as implemented by Chinese in China in 1980-2000 was so that repatriation burden was zero. . Telling this to most SoMoKen-andbhagats would be like reading bhaagawat to a buffalo. All they like to do is slogan shouting, throw punchlines, make jinx, cite poems and come up with create fullforms like FDI means First Develop India followed by 4-digit-ID logic that if you are anti-FDI then it means you are anti-development and anti-India !! In fact, the most recent argument I got from NaMo-bhagats was instead of bashing GoI policies, you should take broom and clean near by roads, gardens and slums !!. Saare tark par jhadu fer diya !!! . But still, it is our duty to spread the word, and so we should tell the importance of repatriation burden that debt, FDI etc create..
Posted on: Mon, 10 Nov 2014 10:21:58 +0000
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