Monthly Archives January 2016

Bag Tax Leads to Shoplifting in the UK

January 15, 2016 Taxation in UK

LONDON – The UK’s tax on plastic bags has had a positive effect on the environment, but it has also left to a significant increase in shoplifting.

According to new research conducted b the consumer group, nearly GBP 26.7 million worth of plastic shopping bags have been stolen by consumers in the UK since the introduction of the controversial plastic bag tax in the country.

Since October last year shoppers in the UK have been required to pay GBP 0.05 if they wish to receive a plastic shopping bag at a checkout in a store.

Approximately 51 percent of participants in the new research project have now admitted to stealing a plastic bag at a checkout, especially at self-service checkouts in supermarkets, and based on this statics, it is estimated that over GBP 26...

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Carbon Taxes Needed on Shipping and Flights

January 15, 2016 International Tax Cooperation

WASHINGTON D.C. – Despite logistic difficulties, the IMF is urging carbon taxes to be levied on fuels used in international shipping and flights.

In a recent report the international non-government organization the International Monetary Fund claimed that carbon pricing should be “front and centre” in international efforts to reduce carbon output around the world.

As part of the push for carbon taxation, the IMF also added that substantial tax revenues could be raised to fight climate change by levying carbon taxes on the use of fuels for international aviation and maritime transport.

It is estimated that as much as USD 25 billion could be raised by levying such taxes.

Emissions from planes and ships are thought to account for about 4 percent of global emissions.

The IMF conceded th...

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Tax Breaks Boost Car Sales in China

January 13, 2016 Taxation in China

BEIJING – Tax breaks are leading to an increase in car sales in China, and the positive effect is expected to last through to at least the end of this year.

The implementation of a tax break on automobile sales has led to growth in the industry in 2015, although the rise was not as significant as expected.

It was previously expected that by the China Automobile Association that the automobile industry in the country would reach a level of 3 percent, and in reality the level actually reached 4.7 percent.

The higher-than-expected growth have been attributed to the government’s tax break on the sale of small-engine cars.

Currently, anyone purchasing a car in China will see the standard 10 percent sales tax hiked, if the car has an engine not exceeding 1.6 litres.

The tax break is schedule...

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UK Needs a 50% Sugar Tax

January 12, 2016 Taxation in UK

LONDON – The UK needs a tax on sugary drinks, but the rate should be set at much more than the proposed 20 percent.

According to researchers at the UK based National Obesity Forum the currently proposed 20 percent tax on the sale of sugary drinks will not be effective, and the rate needs to be raised to as much as 50 percent order to lead to any health benefits.

The Forum claims that a tax rate of less than 50 percent “…on sugary drinks will be insufficient as a disincentive to consumers.”

It was emphasized that the Forum does not endorse extra taxes on foods, however, sugary drinks were an exception due to their significantly negative effect on health.

The National Obesity Forum is not the only UK group calling on taxation of sugary drinks this week, as the Cancer Research U.K...

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Sale of Luxury Property Should Be Taxed in Australia

January 11, 2016 Taxation in Australia

Ireland Property TaxCANBERRA – Australia could earn billions in tax revenues by dropping the tax exemptions for the sale of high priced houses.

In a new research paper released on January 1th the independent think tank the Australia Institute claimed that the exemption of capital gains tax on the sale of property does little to benefit low-income families, instead providing significant benefits to the country’s wealthiest taxpayers.

It is estimated that in the 2015 – 2016 financial year the country’s wealthiest citizens will enjoy tax breaks of AUD 46 billion due to the capital gains tax exemption.

The total amount of the tax exemptions will rise to as much as AUD 189 billion from the tax exemption by the year 2020.

It was suggested that the tax exemptions should no longer apply to the sale of houses w...

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