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
October 17, 2014 Taxation in UK
LONDON – Tax compliance is improving in the UK, although a significant portion of taxes are still outstanding due to tobacco smuggling and evasion of VAT.
The difference in the amount of tax revenues collected in the UK and the amount of taxes actually collected in the UK between 2012 and 2013 is approximately GBP 34 billion, an amount equivalent to 6.8 percent of total tax liabilities, according to new information released by the HM Revenue and Customs on October 16th.
According to Financial Secretary to the Treasury David Gauke said that at the current levels, the UK has one of the lowest tax gaps in the world, and the government’s active measures to lower tax evasion and to raise tax compliance has proven to be effective.
The current level of the gap of 6...Read More
October 16, 2014 Taxation in USA
WASHINGTON D.C. – Tax revenues in the USA are hitting record highs as collections of both personal and corporate income taxes see significant growth.
On October 15th the US Treasury Department issued the Monthly Treasury Statement for the fiscal year through to September 30th 2014, showing that the national budget deficit has reached the lowest level since 2007.
The lowered budget deficit has been attributed to the fact that the total of tax revenues collected reached USD 352 billion, the first time that the tax take breached USD 3 trillion since records began.
The total tax receipts were fuelled by a 6 percent increase in collections of personal income taxes, and a 17 percent rise in the collection of corporate income taxes.
The current budget deficit is USD 483...Read More
October 15, 2014 International Tax Cooperation
PARIS – Under-taxing cars and fuel is costing more than EUR 140 billion per year in the countries of the OECD.
Earlier this month the Organization for Economic Cooperation and Development issued a new report showing that diesel fuel and company cars are under taxed, effectively encouraging taxpayers and businesses to drive further, significantly damaging the environment.
The finding detailed in the report are based on the information about the taxation of diesel and company cars across all OECD countries in 2012.
According to the OECD, as company cars are taxed at a lower rate than wages, the difference is effectively a tax subsidy for car drivers, amounting to an average of EUR 1 600, but rising to as much as EUR 2 763 per year in some countries.
Adding to the environmental concerns, it i...Read More
NAIROBI – In less than one year the five countries of the Eastern African Community will have a harmonized tax system.
At an event to mark the launch of Taxpayers Week in Kenya on October 13th the Tourism Cabinet Secretary Phyllis Kandie announced that the process of harmonizing taxes among the countries of the East African Community should be completed by April 2015.
During her speech she explained that the governments of Burundi, Kenya, Rwanda, Tanzania and Uganda are pursuing the implementation of a “…the harmonization will see a fully operational Single Customs Territory which was hampered by the absence of a harmonised tax regime.”
The process of facilitating a harmonized tax system is currently ongoing, with Kenya, Uganda and Rwanda recently implementing matching rates of exci...Read More