July 26, 2016 Uncategorized
PORT VILA – Vanuatu needs to hike the rate of value added tax instead of raising income taxes, or else the country could face more difficulty in finding skilled workers.
In a radio interview on July 25th, Martin Hilaire of the Chamber of Commerce of Vanuatu, called on the national government to drop the proposal to raise income taxes, and, instead, hike the rate of value added tax.
Currently the rate of Value Added Tax in Vanuatu is set at 12.5 percent, and Martin Hilaire claimed that it should be raised by 2.5 percent to 15 percent.
It was explained that currently only 26 000 people in Vanuatu are registered for the Vanuatu Pension Plan, indicating that less than 10 percent of the population is included in the tax net.
If income taxes were raised, the burden of the rise would fall squar...Read More
July 25, 2016 International Tax Cooperation
WELLINGTON – Property taxes vary widely around the world, from 11.3 percent in Belgium to nothing in New Zealand.
The results of a new report published by the international accounting form UHY Haines Norton has shown that New Zealand levies the lowest rates in the world on the purchase of property, while Belgium levies the highest rate.
The report contains results of calculations of the taxes due to local, state, or national governments when making a private purchase of a property worth USD 1 million.
Currently New Zealand does not charge any taxes on the purchase of property, followed only by Russia which charges a nominal tax, which would amount to only USD 30.35 on the purchase of the property.
Conversely, the average amount of tax to be paid in Belgium on the purchase of a property w...Read More
July 25, 2016 Taxation in Israel
TEL AVIV – Israel now has the worst traffic in the OECD, thanks in part to a tax which has helped reduce the countries reliance on highly polluting cars.
According to new information released by the Organisation for Economic Cooperation and Development (OECD) over the weekend, taxes levied on cars sales in Israel have seen a dramatic shift in consumer preference towards low-pollution vehicles, but has also resulted in much greater traffic congestion.
In 2009 Israel implemented a policy of taxing car sales based on each car’s emissions levels of five different pollutants.
At the time of implementation the least polluting cars in Israel accounted for 19 percent of all sales in the country.
However, in 2014 the level of sales of the least-polluting cars had risen to 83 percent of all priva...Read More
July 21, 2016 Taxation in UK
LONDON – New evidence suggest that an increasing number of motorists in the UK are skipping out on vehicle taxes.
In its annual report released on July 20th the UK Driver and Vehicle Licensing Agency (DVLA) showed that revenues from the collection of vehicle tax in the UK has fallen by GBP 93 million between 2014/15 and 2015/16.
Vehicle excise duty is currently the primary tax faced by motorists in the UK, however, up to October 2014 the system used to was called the “tax disc” system.
It is believed that a significant portion of the reduction in tax revenues could be attributed to a rise in tax evasion by motorists.
Prior to the swap from the tax disc system to the vehicle excise duty, it was estimated by the government that an increase in evasion would result in a tax drop of GBP 80 ...Read More
July 20, 2016 Taxation in Israel
TEL AVIV – Scooters and motorbikes in Israel will slash taxes on scooters from 40 percent to 25 percent in an effort to reduce traffic jams.
The Finance Minister of Israel Moshe Kahlon announced that the taxes on small motorbikes would be decreased, in an effort to cut congestion and emissions.
Until June 30th 2017 the tax on the sale of small motorbikes will be reduced from 40 percent to 25 percent.
In order to fall within the scope of the tax cut, the motorbike must be less than 125cc and be rated at less than 11 kilowatts.
It is believed that the reduction in the price of small motorbikes will lead to a greater uptake by people, ultimately leading to reduced emissions levels and reduced congestion in urban areas.
It is believed that congestion in Israel causes enough economic damage to...Read More