اخبار 1

If you cut tax rates, will companies invest more ? This is almost a religious belief in a certain party in a certain country in the world. Is it justified  ? The answer, in my opinion, is mostly No. Companies make investment decisions based on markets, sales projections, competitive advantage, margin potential, scalability and the like.  These are extremely complex business variables and occupy 90% of the time and effort that goes into a business decision. The tax line is one of the last lines in the cash flows of an investment proposal. It is certainly important, but hardly a determiner of whether the investment goes ahead or not. There are a few instances when the tax rate indeed becomes a determining variable in the decision. For example, in India, there have been many instances where the government, in an effort to stimulate an underdeveloped part of the country has allowed zero income tax rates for operations located in those areas. In such a case, the tax rate becomes a determine...

In the normal world of business, companies are supposed to treat their customers with kids gloves. And customers are supposed to be very partial to the brands that they buy. It's all supposed to be a love love relationship . Not so in the airline industry. Customers absolutely loath airlines. The act of flying is considered by most flyers, especially the regular ones, as next only to root canal surgery.  And airlines (mostly) hate their customers. They are little more than cattle, in their eyes. And everybody associated with the act of flying hates everybody else. The security folk are hated by all. Most airports in the world are glorified cattle pens. And yet the industry is booming. The rash of incidents being reported from the US will simply pass over. The hate hate relationship is alive and kicking and will simply continue thriving. Why is this so ?  Two reasons primarily, in my view - One, there is no option but to fly. - Two,  customers care for nothing else but price. All th...