November 29, 2015 Taxation in UK
LONDON – Dropping the UK’s “tax disc” system has resulted in a significant loss in tax revenues, and a rise in tax evasion.
The scrapping of UK “tax disc” system has led to a greater number of people skipping out on their vehicle taxes, according to new information issued by the UK government on November 26th.
Prior to October 2014 all cars in the UK were liable to display a round paper sticker in their windshield to indicate that all appropriate duties on the particular car have been paid, however, the system has now been updated and is managed via an electronic database.
It has now been shown that since the introduction of the electronic excise duty system, the tax revenues collected from cars has fallen by GBP 80 million.
The total amount of taxes collected per year from excise du...Read More
November 26, 2015 International Tax Cooperation
LONDON – New research is calling for taxes to be placed on the sale of meat, as such a move will ultimately reduce obesity rates, diabetes, cancer, and carbon emissions levels.
Taxes on the sale of meat and meat products would encourage consumers to eat less meat, subsequently leading to less intensive farming of livestock, and reduced emissions levels, according to information in a new report released by the international think tank Chatham House.
It was concluded that a “carbon tax” of approximately USD 2.66 per kilo of beef could reduce meat consumption by as much as 14 percent.
It was noted that any such tax could be met with strong public resistance, however, the potential outcry could be overcome if the government takes adequate steps to explain the reasoning and need for the ta...Read More
November 25, 2015 Taxation in New Zealand
WELLINGTON – A tax on sugary drinks will reduce obesity in New Zealand, but taxing fatty foods and dropping taxes on fruits and vegetables may not have the same effect.
On November 19th the Treasury of New Zealand made public a report prepared in February this year, with analysis of several tax proposals aimed at reducing the rates of obesity in the country.
The report contained analysis of the potential impact of introduction of a tax on the sale of sugary drinks, the introduction of a tax on foods high in saturated fats, and the effects of dropping GST on fresh fruits and vegetables.
The Treasury concluded that a tax on the sale of sugar sweetened drinks could have positive results in the government’s efforts to cut down the effects and occurrence of obesity.
It was noted that whil...Read More
November 24, 2015 Taxation in UK
LONDON – Pubs in the UK pay the second highest total rate of tax in the UK compared to all other industries, and pay six times as much for their business rates then they should.
In a new report released this week the British Beer and Pub Association (BBPA) claimed that British pubs pay one of the highest tax burdens of any industry in the country.
In total, pubs in Britain cumulatively paid GBP 7.3 billion in taxes, or approximately GBP 140 000 each, a level equivalent to approximately 34 percent of their annual turnover.
The majority of the tax burden faced by British pubs was attributed to VAT, excise duties, and business rates.
It was also noted that the business rates are set based on the expected turnover of pubs, however the expectations are set by tax authorities at the levels of a...Read More
November 23, 2015 Taxation in Saudi Arabia
Saudi Arabia may turn to taxes to encourage land developers to utilize their land for residential development by implementing a 2.5 percent tax on undeveloped land.
Last week the Shura Council, a body which provides advice on legislation to the government of Saudi Arabia, approved the proposal to implement a tax on undeveloped land in the Riyadh.
It is estimated that approximately 49 percent of all land in Riyadh is currently unused, and, similarly, 50 percent of land and Dammam and 40 percent in Jeddah is also undeveloped.
The council recommended that the owners of the land be taxed at a rate of 2.5 percent of the value of the land if it remains undeveloped.
In Saudi Arabia it is common for wealthy developers to purchase land but not engage in any actual development, instead opting to ...Read More