Monthly Archives August 2012

Finland Cuts Deficit with Tax Hikes

August 31, 2012 Taxation in Finland

Prime Minister of Finland Jyrki KatainenHELSINKI – Finland will raise taxes and cut spending in an effort to close the national budget deficit and maintain its stable financial position.

On August 30th the six party coalition government of Finland concluded a meeting in Helsinki, at which discussions were held on how to narrow the national budget deficit to within 1 percent of the country’s GDP by the end of next year.

At the meeting an agreement was reached to increase the rate of the national value added tax in 2013 by 1 percent to a level of 24 percent to raise tax revenues by EUR 1.3 billion per year, and to implement a new tax on the profits of banks.

In an effort to further cut down the growth of the national debt, the government agreed to cut public spending and expenditures.

The government will also allocate approximate...

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India’s New Tax Rules Delayed Again

August 30, 2012 Taxation in India

Tax rules in IndiaNEW DELHI – India is facing another delay to the implementation of its long debated Direct Tax Code, as the Finance Ministry looks at revising the proposed rules.

At a press conference held in New Delhi following a meeting of the Central Board of Excise and Customs, the Finance Minister of India Chidambaram Palaniappan revealed that the government may not be able to implement the proposed Direct Tax Code (DTC) by April 2013, as is currently scheduled.

The Minister explained that since the DTC was first proposed it has undergone numerous revisions and updates, and now “…it requires a fresh look”.

The DTC is intended to replace the Income Tax Act 1961, and would raise tax thresholds and lower tax rates on personal incomes, and would also introduce several changes to taxation of businesses, ...

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Rich Americans Should Pay More Tax

August 29, 2012 Taxation in USA

Rich Americans Should Pay More TaxWASHINGTON D.C. – More than half of all Americans believe that the richest people in the country do not pay enough taxes.

The results of a new poll conducted by the Pew Research Center, which were released on August 27th, show that approximately 58 percent of all Americans believe that the wealthiest taxpayers in the country do not pay a “fair share” of taxes.

Only 26 percent of all individuals surveyed believed that Americans with high incomes are currently paying a enough taxes, and approximately 8 percent of respondents thought that wealthy individuals are paying too much taxes.

The results of the survey indicated that more than half of all taxpayers who classed themselves as upper class or upper-middle class also thought that Americans with high incomes do not pay enough taxes.

The Pew...

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Italy Mulls Tax on “Unhealthy Drinks”

August 28, 2012 Taxation in Italy

Unhealthy drinksROME – Italians could soon be paying an extra tax when buying beverages, as the government looks to boost its budget and to increase funding to the health sector with a new tax on unhealthy drinks.

In a statement released on August 27th the Ministry of Health of Italy revealed that it is investigating the feasibility of instating a new tax on beverages deemed to be unhealthy, in an effort to improve the health and lifestyles of the population of the country and in an attempt to boost government tax revenues.

If implemented, the tax on unhealthy drinks would be charged at EUR 0.03 per bottle, and would raise an estimated EUR 250 million per year in extra tax revenues.

The Health Ministry is scheduled to decide by the end of the week whether it will go forward with its proposal to introduce...

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France to Raise Taxes On High Incomes

August 27, 2012 Taxation in France

Jean-Marc AyraultPARIS – The government of France intends to revamp the national tax system to increase taxation on the richest taxpayers and to provide greater economic support to small business.

In an interview with the French newspaper Le Journal du Dimanche on August 25th the Prime Minister of France Jean-Marc Ayrault indicated that the country would soon see a major overhaul of the national tax system, with a greater emphasis on taxing high income earners and on encouraging economic growth in France.

The Prime Minister said that the government  intends to reform the current tax system within the next three months and introduce measures to encourage greater investment into the economy, especially into small and medium sized businesses and companies involved in producing advanced or innovative products...

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