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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."

25 of 293 comments (clear)

  1. Well, by revlayle · · Score: 4, Funny

    it's gotta be a cheaper tax than that *heavy* energy...

    1. Re:Well, by killa62 · · Score: 4, Funny

      Alaska just called, they want their Ted Stevens back.

    2. Re:Well, by AK+Marc · · Score: 4, Funny

      No, we don't.

  2. 100 phothons please by BSAtHome · · Score: 4, Funny

    That will be billed per photon then?

    1. Re:100 phothons please by dgatwood · · Score: 5, Interesting

      The amount of light generated by the customer should be equal to the amount being generated by the other end, unless you send a significantly disproportionalte number of 1 bits versus 0 bits. See Manchester Encoding.

      The money changes hands in exchange for actually routing the data back and forth, not for providing the light. Where the light is concerned, you have a like-for-like (light-for-light?) exchange between two parties with no financial transaction involved. So basically, the companies should simply tell the government that the two parties performed a like-for-like exchange of equivalent amounts of light, and that no additional money changed hands as a result of any inequality in the number of zero (high) bits. Therefore, since 15% of zero is zero, no tax is owed. Problem solved.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    2. Re:100 phothons please by Beyond_GoodandEvil · · Score: 4, Interesting

      Light is _very much_ worth something.

      The power to tax is the power to destroy. So if the Indian govt. wants to destroy their "information" economy by taxing ISPs for light generating, then they are on the right track.

      --
      I laughed at the weak who considered themselves good because they lacked claws.
  3. Oh noes!!!11! by skraps · · Score: 4, Funny
    Nothing for you to see here. Please move along.
    Oh noes, they already shut off the light!
    --
    Karma: -2147483648 (Mostly affected by integer overflow)
  4. Wow by Anonymous Coward · · Score: 4, Funny

    This sounds reasonable and ingenious.

    1. Re:Wow by ZWithaPGGB · · Score: 4, Insightful

      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.

  5. Well, then... by GillBates0 · · Score: 5, Funny

    ...I generate "wind energy" several times a day, but I don't ask the Government to pay for it, do I.

    --
    An Indian-American Hindu committed to non-violent thought/speech/action alarmed by the global explosion of radical Islam
    1. Re:Well, then... by Anonymous Coward · · Score: 5, Funny

      You're generating methane. That is a taxable energy source. You're gonna have to bottle that by law, so it can be metered. Or, we can have a meter attached...

  6. Tomato by aralin · · Score: 4, Informative

    It's like the US government reclassifying tomato as a vegetable so it can impose the import tarif on it. Governments always look for ways how to tax the hell out of you. Nothing new here. Move along.

    --
    If programs would be read like poetry, most programmers would be Vogons.
    1. Re:Tomato by jfengel · · Score: 4, Informative

      The tomato is botanically a fruit, since it contains the seeds. But fruits are taxed differently from vegetables, and since the tomato is treated more like a vegetable than a fruit in cooking, it took the Supreme Court to decide that this fruit was in fact a vegetable. (Presumably the same applies to squash, which are nearly identical to watermelons botanically; the latter is eaten as a fruit and the former as a vegetable.)

      But if we genetically engineer them to put the RSA code on them, then I guess they'd be a munition. They're also good for throwing at bad actors.

  7. Here's an idea by Mayhem178 · · Score: 4, Funny

    Let's put them all on a shuttle and send to them collect billions of years of back taxes from the sun.

    --

    "You will pay for your lack of vision..." - Emperor Palpatine to Ray Charles

  8. Imperialism well taught by jfmiller · · Score: 5, Insightful

    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
  9. Attempt to re-distribute the wealth? by pauljuno · · Score: 4, Interesting

    I'm curious as to whether or not this isn't an attempt by the Indian government to try and help re-distribute the wealth to a degree. My understanding is that there is a growing urban/rural conflict emerging as the elites in the major urban areas are growing wealther and wealthier due to outsourcing by wealthier nations to India and the rural areas continue to be rather impoverished. So the net impact on the populace is only going to be really hitting the urban areas and the new tax revenue could be used through-out the country. Not saying I like the idea of this tax, I'm just speculating on what could be the root idea behind it.

  10. Re:This may be an Indian "April Fools" by OmnipotentEntity · · Score: 5, Informative

    News to me and to wikipedia. http://en.wikipedia.org/wiki/October_10

    --
    "Build a man a fire warm him for a day, set a man on fire and warm him for the rest of his life."
  11. Re:The hell? by negative3 · · Score: 5, Insightful

    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
  12. Re:This may be an Indian "April Fools" by radtea · · Score: 4, Interesting

    Unfortunately, to paraphrase Faraday, nothing is too stupid to be true.

    In some jurisdictions compressed air is considered a "tangible commodity" and therefore subject to sales tax (not VAT or GST, but ordinary sales tax that nominally applies only to manufactured goods.) The dive shop in my home town had a letter from the provincial government posted explaining this, as a lot of customers were asking, "Why the hell to I have to pay provicial sales tax when I get my tanks filled--isn't this a service? And aren't services not subject to provincial sales tax?"

    So the bottom line is that governments have always been willing to redefine terms and just make stuff up when it helps generate tax revenue. Much like every other human organization, in fact.

    --
    Blasphemy is a human right. Blasphemophobia kills.
  13. Best wishes to the Indian government by Sergeant+Beavis · · Score: 5, Funny

    I wish you 100% success in your initiative to tax light energy from Indian ISPs

    You will single handedly kill outsourcing to your country. Many American IT workers will deliver many thanks upon you

    --
    There is nothing inherently safe about liberty. That's why so many people died protecting it.
  14. Not Really... by ackthpt · · Score: 4, Insightful

    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
  15. Light is Free by richardtallent · · Score: 4, Insightful

    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.

    1. Re:Light is Free by forkazoo · · Score: 4, Funny
      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.


      Wait... So, you want to charge people for *not* shooting a laser at them. That's bloody brilliant.
  16. Re:This may be an Indian "April Fools" by Neoncow · · Score: 5, Funny

    It's also World Mental Health Day. Indian politicians are challenging us to question their mental stability.

  17. particle or wave? by OrangeTide · · Score: 4, Funny

    So India will finally decide if a photon is a particle or a wave?

    this is great! SCREW YOU EINSTEIN!

    --
    “Common sense is not so common.” — Voltaire