October 24, 2014 Taxation in South Africa
CAPE TOWN – South Africa will soon have to enact a selection of tax hikes and spending cuts in order to meet its own tax revenue targets.
While delivering the medium term budget policy statement on October 23rd the Finance Minister of South Africa Nhalanhla Nene indicated that over the next three years the government may be forced to hike taxes.
Unless the government can significantly reduce expenditures and boost tax revenues immediately, the total government debt of the government of South Africa could reach SAR 2.4 trillion by the end of the 2017 financial year.
During the medium term budget policy statement the Finance Minister announced that the level of economic growth in South Africa is expected to fall this year from a level of 2.7 percent to as little as 1...Read More
October 23, 2014 Taxation in USA
WASHINGTON D.C. – American taxpayers need to shed their preconceptions about high tax rates and pay a marginal rate of 90 percent, for the good of all taxpayers in the country.
The wealthiest taxpayers in the USA should pay a marginal tax rate of as much as 90 percent on personal incomes, according to information contained in a new working paper released by Fabian Kindermann and Dirk Krueger, researchers from the University of Bonn and the University of Pennsylvania, respectively.
The conclusions detailed in the paper are based on mathematical modelling of the behaviour of the wealthiest 1 percent of taxpayers in the USA, taking into account the elasticity of labour supply among the wealthy, and showed that charging a marginal tax rate of 85 percent to 90 percent on incomes above USD 450 ...Read More
October 22, 2014 Taxation in Hungary
BUDAPEST – Internet access in Hungary is expected to become significantly more expensive, as the government plans to implement a usage-based tax on internet access.
At a press conference held on October 21st the Economics Minister of Hungary Mihály Varga announced a new proposal to levy a tax on internet access in the country at a rate of HUF 150 for each gigabyte used by a user.
Currently no taxes are levied on internet access, but a tax is applied on each minute of phone calls made, and also on each SMS message sent, and the Minister explained that the new tax has been proposed as an increasing amount of communication and messaging is now done not through traditional telephone or mobile networks, but via online applications.
The tax is expected to raise as much as HUF 20 billion per y...Read More
October 21, 2014 Taxation in Israel
JERUSALEM – Mining companies in Israel may see as much as half of their incomes taxed away, if the suggestions raised by a government committee are approved.
On October 20th the government appointed Sheshinski Committee issued a new report proposing changes to the taxation of profits earned from mining activities in Israel, suggesting that a new progressive tax of between 25 percent and 42 percent on profits.
The tax was recommend to be charged at a rate of 25 percent after the activities of the company reach an annual return on investment of 14 percent, rising to a maximum rate of 42 percent when profits rise enough to attain a return on investment of 20 percent or higher.
The currently active royalty rate will be set at a uniform rate of 5 percent, compared to the current variable rat...Read More
October 20, 2014 Taxation in Pakistan
ISLAMABAD – Despite the fact that tax revenues are still not reaching government targets, the tax-to-GDP ratio seen in Pakistan has been shown to be on the rise.
Over the weekend the Federal Board of Revenue of Pakistan issued the FBR Biannual Review for the 2013 – 2014 financial year, showing that the national tax-to-GDP ratio during the time period reached 8.9 percent, while in the previous year the tax-to-GDP ratio was 8.5 percent.
Over the 2013-2014 financial year, tax collections in Pakistan reached a total of PKR 2 266 billion, while in the previous year tax collections were only PKR 1 946 billion, equating to a growth level of 16 percent.
It was noted that the levels of growth required to reach the government’s tax collections targeted are higher than the growth levels seen in t...Read More