Salt Tax Proposed in New Zealand

May 4, 2015 Taxation in New Zealand

WELLINGTON – Calls have been raised in New Zealand to tax salt like tobacco.

On May 5th the University of Otago issued a statement showing that researchers at the institute are calling for an excise tax to be enacted on salt, in order to improve the health and lifestyles of New Zealanders.

It is estimated that the average New Zealander currently consumes 3500 mg of sodium a day, with only 10 percent coming as added salt, while the remainder comes from the salt added to processed foods during the manufacturing stage.

The researchers evaluated the possible methods of reducing salt consumption in New Zealand, and found that levying an excise tax on salts would be second most effective option, as it would force manufacturers to lower the use of salt.

It was also added that the tax rate could...

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Puerto Rico Rejects Tax Proposal

May 1, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is facing doubt over its upcoming debt issuances , as the government rejects calls to reform taxes.

On April 30th the House of Representatives of Puerto Rico voted 28 to 22 to reject a proposed round of tax changes aimed at helping the country attract foreign investment and to fix the current budget deficit.

Under the details of the proposal, the current 7 percent sales tax would have been replaced with a value added tax levied at 16 percent.

Legislators also rejected alternative measures such a replacing the 7 percent sales tax with a sales tax levied at 1 percent alongside a value added tax set at 13 percent.

Shortly following the rejection of the proposal the Governor of Puerto Rico Alejandro Garcia Padilla held a televised national address in which he said that...

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New Zealand Doesn’t Need Capita Gains Tax

April 30, 2015 Taxation in New Zealand

WELLINGTON – New Zealand should not implement a capital gain tax yet, as a lack of taxation may nt be the cause behind the current rise in house prices.

In a statement issued on April 30th the New Zealand Property Investors Federation claimed that there is no need to implement a capital gains tax on property sales in the country, as the current tax system already does enough to tax property investors.

Over the course of recent years New Zealand has seen revived calls for a capital gains tax, especially in the face of the currently escalating housing prices in the country.

However, according to the New Zealand Property Investors Federation, under current regulations any profits made from the sale of a property by an investor or speculator will be attributed to the personal income of the ...

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Fuel Efficient Cars Lower Tax Take in UK

April 29, 2015 Taxation in EU

LONDON – Tax revenues in the UK are coming under risk due to the consumers’ preference for efficient cars and plug-in vehicles.

According to new information issued by the UK Society of Motor Manufacturers and Traders (SMMT) earlier this week, nearly 70 percent of cars sold in the UK over the course of 2014 had low enough carbon emissions to qualify for an exemption from Vehicle Excise Duties.

Currently, the government grants exemptions from the vehicle excise duty on purchases of cars with emissions levels of less than 130 grams per kilometer.

In 2013 the collection of vehicle excise duties resulted in tax revenues of approximately GBP 6 billion, however, these revenues are coming under threat due to the increasing efficiency of new cars, and the popularity of low-emissions vehicles in th...

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Tax Delay Leads to Downgrade for Japan

April 28, 2015 Taxation in Japan

TOKYO – By delaying the upcoming hike to the rate of sales tax, Japan has garnered a downgrade to its credit rating.

On April 27th the international ratings agency Fitch Ratings downgraded the ratings of the sovereign debt of Japan, due to the country’s inaction to finding sources of revenues to compensate for the delay in the implementation of the country’s controversial hike to sales taxes.

Japan was scheduled to raise the rate of sales tax from 8 percent to 10 percent in April 2017, following an increase of 3 percent in April 2014.

According to Fitch Ratings the government of Japan has not done to account for the loss in revenues which will arise due to the delay in the implementation the raised tax rate.

It was also noted that last year the rate of corporate income tax in Japan w...

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