December 6, 2016 Taxation in UK
On December 5th the UK government released the draft of its proposed new legislation which will see tax levied on the sale of sugary beverages.
Under the scope of the new rules, sugar-sweetened beverages will be taxed in two bands, with drinks a sugar content of more than 5 grams of sugar per 100 millilitres being taxes at a rate of GBP 0.18 per litre, while drinks with more than 8 grams of sugar per 100 millilitres being taxed at a rate of GBP 0.24 per litre.
Previously the government had estimated that the tax would raise as much as GBP 520 million per year.
It is estimated that the tax would ultimately add between GBP 0.18 and GBP 0.24 to the shelf-price of drinks sold in the UK.Read More
December 5, 2016 Taxation in Philippines
In a recent interview the president of the Philippine Society of General Internal Medicine Antonio Miguel Dans reportedly claimed that as many as 8 million locals have quit smoking due to the effect of tax hikes on the sale of tobacco.
The latest round of tax hikes on the sale of tobacco occurred in 2012, and were aimed specifically at reducing consumption of tobacco in the country.
In 2012 the estimated smoking rate in the country was approximately 31 percent, while it has now dropped to 23 percent, a drop equivalent to approximately 8 million people.
The supply of cigarettes in the Philippines between 2012 and 2015 ...Read More
December 2, 2016 Taxation in China
Earlier this week the government of China announced that it would enact a new tax on the sale of luxury and supercars, in an effort to rein in automotive emissions and control the lavish spending of the country’s elites.
The new tax will be levied at a rate of 10 percent of the purchase price of any vehicle valued at more than CNY 1.3 million (approx. USD 189 thousand).
The tax is targeted at foreign-made imported cars, and, at this stage, does not apply to any models made in China.
Luxury cars in China already face a tax based on their engine size, with large models facing taxes of up to 40 percent.
Several high-end car...Read More
December 1, 2016 Taxation in UK
On November 30th the UK government approved the Scotland Act 2016 which devolves income tax powers to the government of Scotland.
Under the new rules, from April 6th 2017 the government of Scotland will have the power to independently set the rate of income tax in the country and to also adjust the income tax thresholds.
The current tax thresholds in the UK, and subsequently Scotland, are GBP 11 000, GBP 42 700, and GBP 150 000, with the respective tax rates set at 20 percent, 40 percent, and 45 percent.
However, Scotland will not be empowered to adjust the level of the personal allowance, below which individuals do not face tax obligations.
Commenting on the devolution,...Read More
November 30, 2016 Taxation in Canada
In a new report, researchers from the Canadian School of Public Policy claimed that Canada may be losing out on international business and investment due to a local trend of raising the rate of taxes faced by businesses.
It was noted that in the report that the climate, vastness, and cost of doing business in Canada has been a detraction for international businesses looking at the country, although, in recent times Canada has been increasing its attractiveness as a business destination through a concentration on tax competitiveness.
However, recently the federal and provincial governments of Canada have opted to raise the taxes on business...Read More