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Tax can make or break an industry, and the boating is no different. It is easy to spot that those places in Asia where taxes are low on boats are also the places with the largest boating industries. For example, Hong Kong currently has one of the biggest boating industries in Asia, and the city has zero tax on boats. Other aspects, such as the ease of getting licenses and transferring ownership, are also important. The economic situation of a country also plays a role of course, but currently we are seeing taxes as being one of the major problems that prevents the boating industry from reaching its potential in many parts of Asia.

What the government failed to understand, was that although many of yacht buyers and owners were fairly rich, there was also a large number of middle class boaters who were not able to pay the extra tax. Those affected by the tax were mainly ordinary people who worked and ran the industry. Boat builders, distributors and agents, maintenance workers, engineers, mechanics, surveyors, crew members and suppliers of every imaginable kind of boating equipment. Everything combined, it was a huge industry.

But the workers who form the backbone of the boating industry had no other alternative. When the buyers suddenly stopped buying boats, the industry’s income stopped with it. Suddenly distributors, supplier factories, maintenance shipyards and every other boating related company were forced to lay off their staff, and the industry suffered massive unemployment.

Many countries in Asia are yet to understand this concept. In many cases the political situation in a country bars the politicians from deducting luxury tax because it makes them look like they are favoring the rich. India is one country that has simply been refusing to realize its potential to start a boating industry. The government has yet to take any concrete steps towards creating a proper boating industry.

Some politicians in Asia argue that there is more important Water Fountain Crew to be taken care of than the boating industry. When there is so much poverty in a country, it might be more prudent and human to rather solve that problem than providing infrastructure for rich man’s hobbies like yachting. This argument does not make sense, however. Creating employment and promoting industry is the absolute best way to eradicate poverty and empower the poor. Although it is true that the government may have limited budget to provide a specialized infrastructure such as what is required for boating, there are solutions. A good way to start would be to simply provide a space for the private sector to build the boating infrastructure, and create a consumer-friendly taxation system that would drive the industry.

By imposing unnecessary import duties, the governments in Asia are also hurting their own export industry. Countries often react to one another’s tax regulations and get embroiled in ‘tax wars’. This halts growth for everybody, and the consumer is the biggest loser at the end of the day. Perhaps lowering taxes on luxury yachts could also be used by the governments to develop their foreign trade relationships.

Published at: Recent Health Articleshttp://recenthealtharticles.org

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