Monthly Archives January 2016

Canada Could See $5 Billion Marijuana Jackpot

January 29, 2016 Taxation in Canada

OTTAWA – Tax revenues in Canada could jump by billions in the foreseeable future, if legalized marijuana becomes as popular in Canada as in the USA.

Earlier this week CIBC World Markets released the results of new research indicating that Canada could see tax revenues rise by as much as CAD 5 billion per year by legalizing and taxing the recreational use of marijuana.

The current Liberal government of Canada has already vowed to legalize the use of marijuana in the country, although the exact legislative changes needed to make the promise a reality have nether been finalized nor scheduled.

The research conducted by the CIBC was based on models of current marijuana usage in Canada, combined with models of the rise in tax revenues seen in the USA following the legalization of marijuana in di...

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Scotch Whisky Needs Further Tax Cuts

January 28, 2016 Taxation in UK

Tax on ScotchEDINBURGH – Cutting excise duties on Scotch Whisky in the UK has been proven to raise tax collections, and now the industry is calling for further tax reductions.

On January 27th the UK Scotch Whisky Association issued a press release praising last year’s cut to the excise duties levied on the sale of whisky in the UK, but added that even further reductions would lead to increased tax revenues and would serve as a boost to the industry.

Last year the government of the UK enacted a 2 percent cut to the rate of excise duties levied on the sale of scotch whisky, lowering the rate from an average of 78 percent to a new average of 76 percent.

In the new press release the Scotch Whisky Association added that over the year since the last tax cut, the tax revenues collected by the government fro...

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WHO Calls for Sugar Tax

January 27, 2016 International Tax Cooperation

GENEVA – The WHO has given its backing to sugar taxes, claiming that such a measure will help combat childhood obesity, especially in low-income households.

Following two years of research the World Health Organization’s Commission on Ending Childhood Obesity released a report this week on steps which can be taken around the world to combat childhood obesity, and, among the recommended measures, proposed the implementation of tax on sugar-filled drinks.

Supporting its view that sugar taxes will help reduce childhood obesity, the report stated that “…overall, the rationale for taxation measures to influence purchasing behaviors is strong and supported by the available evidence...

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Large Retailers Face Extra Tax in Poland

January 26, 2016 Taxation in Poland

WARSAW – Large retailers in poland will soon be facing an extra tax on their profits, with hiked rate for weekend trading and holiday specials.

On January 25th the Finance Ministry of Poland announced that a new progressive tax will soon be enacted on large retail stores operating in the country.

The new tax will be levied at a rate of 0.7 percent on retailers with monthly sales of between PLN 1.5 million and PLN 300 million, and at a raised rate of 1.3 percent on businesses with sales exceeding PLN 300 million.

A further raised tax of 1.9 percent on profits made by large stores on weekends and during holiday sales.

The Ministry also indicated that the new tax shall not lead to any increase in retail prices faced by consumers, leading some experts to believe that the cost of the tax is i...

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India Drops Tax on Gold Deposits

January 25, 2016 Taxation in India

gold in indiaNEW DELHI – The government of India is hoping to make use of the vast reserves of gold held by consumers in the country, and is now offering tax benefits to taxpayers willing to deposit their gold and jewellery in the Gold Monetization Scheme.

Late last week the government of India announced that the regulations of the national Gold Monetization Scheme will be amended to make it more attractive for consumers, and also that the gains made by taxpayers from the scheme will be exempt from taxation.

The Gold Monetization Scheme allows the public to deposit any gold jewellery, bars, or coins for a pre-set period of time in exchange for interest redeemable in gold or money.

The interest rate can be repaid either as more gold, or as money, with the amount to be paid back to be set based on the p...

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