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Indian ISPs Taxed for Generating "Light Energy"
CaptKeen writes, "The Hindu is reporting that the Indian Government is trying to tax optical broadband providers (think fiber to the premises) for generating 'light energy.' According to the Commercial Tax Department, optical broadband providers operate on light energy which is 'artificially created and sold to customers for the purpose of data transmission and information.' This classification would make Internet access goods (since you are buying light) as opposed to service — and would be subject to a 12.5% VAT."
When the British empire controlled India, they levied a small tax on the production of all salt in the country. It was not that the government made much by this tax, nor was it that the people were burdened by it. But india ran on salt, and by taxing it the British controlled it. It was for this reason that Gandhi lead a march to the sea to do the very simple thing of making salt in oppisition to british rule.
When I read that a government that was created by the power and witness of such acts now wished to tax the production and transmission of light, It makes me wonder if they have even read their history.
JFMILLER
Strive to make your client happy, not necessarly give them what they ask for
This article is inducing some serious cognitive dissonance for me. I find this article seriously disturbing.
Taking the taxman's position in this article, one could impose the VAT on cellular telephone providers as they are doing the same thing, exhanging money for a specially encoded form of electromagnetic radiation. That's right - the only difference between visible light and radio waves is the frequency. You can not hold visible light in your hand just as you can not hold any EM waves.
And FM radio gives their radiation away for free...must be communists or something
"Physics is to math what sex is to masturbation." - Richard Feynman
Like India REALLY needs more government interference and disincentive to investment.
When will people learn that you get less of what you tax more? Good news for all those US and European workers worried about losing their jobs to offshoring! India is shooting themselves in the foot.
This sounds reasonable and ingenious.
Insidious, maybe. But "Buying Light" suggests it's only unidirectional, what's really happening is you're exchanging light, with a net of 0.
A feeling of having made the same mistake before: Deja Foobar
The fiberoptic light energy is a *free* service, available to anyone without charge.
However, if you would like the ISP to modulate some well-timed *dark* spots in the line for the purposes of data transmission, *that* is going to cost you.
Since darkness (the absence of light) can't be defined as a product, no VAT.
Problem solved.