October 6, 2015 Taxation in India
NEW DELHI – Economic growth in India will reach 7.5 percent this year, however, the government will not reach its own tax collection goals.
On October 5th the Ministry of Finance of India announced that the government will not collect enough tax revenues to meet its own budgetary goals for the year.
Tax revenues for the year are expected to reach INR 14 trillion, while the government had planned to see revenues hit INR 14.5 trillion.
The shortfall in revenue collections has been attributed directly to lower-than-expected collections of direct taxes over the course of the year, with the cumulative total for the year forecast to be up to 7 percent below targeted.
However, despite the fall in direct tax collections, the collection indirect taxes saw a significant rise, increasing by 35...Read More
October 5, 2015 Taxation in France
PARIS – The government of France may be caving to public pressure to reduce the tax benefits for diesel, as evidence mounts that the fuel is more damaging to the environment than petrol.
In a television interview aired on October 4th the Environmental Minister of France Segolene Royal said that car manufacturers and consumers will soon need to prepare for the day that the government will drop the tax subsidies currently available for diesel.
Currently the rate of fuel tax levied on diesel is EUR 0.15 per litre lower than on petrol.
The Minister indicated that the government is now looking at measures to reduce the comparative tax advantage over the course of the next 5 years, although she did not commit to a timeline for the implementation of any tax hikes to diesel.
The government has re...Read More
October 2, 2015 Taxation in UK
LONDON – Consumers in the UK will soon be surprised at the amount that they will pay out as part of the upcoming “bag tax” when shopping.
Earlier this week the UK consumer website money.co.uk released a new statement claiming that consumers throughout the country may pay out GBP 1.5 billion over the next ten years to the upcoming “bag tax”.
From October 5th shoppers in the UK will pay GBP 0.05 per plastic bag that they use to package their shopping.
It is estimated that over the course of a year the average shopper uses 166 plastic bags, resulting in a total bill of approximately GBP 8.32.
As the new charge on bags is not a tax, it will also fall under the scope of VAT, and the government expects that the measure could result in the collection of an extra GBP 70 million in tax revenue...Read More
October 1, 2015 Taxation in Finland
HELSINKI – An upcoming tax cut in Finland may see the prices of ice cream and candy fall significantly.
The government of Finland has announced that starting from 2017 it will drop the currently imposed tax on sugar, as the levy has been deemed to unfairly advantage local producers.
The tax was first introduced in 2011 and is charged at a rate of EUR 0.95 per kilogram, however, the Eurpean Commission deemed the measure to be unfair to overseas sugar producers, as the tax was levied on top of already existing import duties.
It is estimated that in 2015 the sugar tax will bring in EUR 109 million.
The Taxpayers Association of Finland has already come out to claim that the removal of the tax could see the price of a liter of ice cream in the country drop by EUR 0...Read More
September 30, 2015 Taxation in China
BEIJING – China is looking to improve the environment while boosting sales new automobiles by introducing a temporary tax breaks on small-capacity vehicles.
On September 29th the State Council of China announced that the 10 percent tax on the purchase of new vehicles will be halved on the purchase of cars with engine capacities lower than 1.6 litres.
The tax break, which is set to take effect on September 30th and last until the end of next year, is intended to reduce the consumption of energy and fuels in China, while at the same time boosting sales of automobiles.
The market for the purchase of new automobiles in China has seen a slowdown, in line with a general decrease in economic activity in the country, and also in line with the government’s crackdown on corruption.
Alongside th...Read More