Yearly Archives 2015

Oman to Raise Taxes

December 31, 2015 Taxation in Oman

MUSCAT – The government of Oman is looking to raise more non-oil revenues in order to reduce its reliance on variable oil revenues.

The government of Oman has given approval in principal to the proposal of raising corporate income tax and lowering spending in order to mitigate the negative financial impact of the international drop in oil prices.

In order to lessen the reliance on oil-based revenues, which are subject fluctuation and international demand, the government will raise the rate of corporate income tax in the foreseeable future in order to widen the tax base and establish a wider array of revenue streams.

Further, in order to lessen budgetary pressures, the government will also reduce spending on projects and staff salaries and bonuses.

Further, the subsidies on oil products ...

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Korea Hikes Cigarette Taxes, Smokers Quit

December 29, 2015 Taxation in South Korea

SEOUL – Smokers in Korea appear to be smoking less cigarettes, and some may have even quit, as the government has more than doubled the taxes on the sale of cigarettes.

Earlier this week the Korean non-government organization Korea Taxpayers’ Association (KTA) released new information showing that the country’s recent hike to cigarette taxes had very positive results.

In January this year the tax applicable to the sale of cigarettes was raised from KRW 1 500 per pack of cigarettes to KRW 3 318, raising the price of an average pack of cigarettes fro, KRW 2 500 to KRW 4 500.

As a result of the tax hike, the total tax revenues collected from the sale of cigarettes rose by approximately KRW 4.3 trillion, an increase of 63.9 percent compared to the previous year.
However, despite the rise ...

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Fat Tax Will Encourage Low Fat Food Choices

December 28, 2015 Taxation in USA

Five Guys MealWASHINGTON D.C. – New research indicates that a small tax on the fat content of foot may actually encourage consumers to purchase low-fat foods.

The results of a new study completed by researchers from the Northwestern University, the University of Michigan, and the New York University Stern School of Business, have indicated that a tax on the fat content on food may have a strong effect on consumers choices.

The study revolved around monitoring consumer spending habits when buying milk at supermarkets which charged the same price for full fat and skim milk, against spending for milk in super markets which charged a premium for full fat milk.

It was found that in supermarkets where all milks were priced equally, full fat milk was the preferred option, especially in low income areas.

Howe...

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IRS Needs Online Security Upgrade

December 23, 2015 Taxation in USA

WASHINGTON D.C. – The authentication processes used in the US IRS’s online services needs an overhaul in order to improve security and prevent fraud.

In a press release issued on December 22nd the US Treasury Inspector General for Tax Administration (TIGTA) called on the Internal Revenue Serve (IRS) to improve the authentication procedures for its online services, in order to prevent the continuing data hacks and leaks which allow criminals to access taxpayer data.

According to the TIGTA, taxpayers in the USA are increasingly reliant on and demanding of online services allowing them to interact with the IRS when completing their tax obligations or seeking information on their tax affairs.

However, despite the increasing demand for such services across all tax procedures, the IRS has yet...

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US Relaunches Tax Breaks for Electric Motorbikes

December 21, 2015 Taxation in USA

WASHINGTON D.C. – The USA has reinstated a tax break on electric motorbikes, a move which is claimed will not only increase purchases but will also boost research and employment in the green-tech industry.

Last week the US Congress approved a spending package which include the return of a previously cut tax credit on the purchase of electric motorbikes.

The tax credit, which was dropped in 2013, will apply to the sale of all two- and three-wheel electric vehicles which can reach a top speed of at least 45 miles per hour, and have a battery capacity of at least 4kwH.

The new tax credit will be worth 10 percent of the purchase price, with a maximum cap of USD 2 500.

The tax credit for qualifying purchases will be applied retroactively for all sales made from January 1st 2015, and will last ...

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