Monthly Archives February 2016

Alcohol Tax Reform Will Save Lives

February 29, 2016 Taxation in UK

excise duties on alcoholLONDON – Introducing a tax targeted at high-alcohol cheap drinks would save lives in the UK, without impacting moderate and low-level drinkers in the country.

The results of new research released late last week in the medical journal PLOS Medicine indicates that alcohol in the UK is now more affordable then it has been in decades, and new increased tax obligations should be implemented to decrease alcohol-related mortality.

Currently, it is estimated that alcohol is approximately 54 percent more affordable then it was in 1980, and this relative reduction in price is leading to a significant burden on the national health system.

The results of the research indicated that in order to reduce the mortality rate from alcohol-related illnesses, the government should reform the alcohol taxation ...

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South Africa Will Launch Sugar Tax

February 26, 2016 Taxation in South Africa

PRETORIA – Within one year South Africa will see a new tax on the sale of sugary drinks, despite claims that such measures don’t lead to any health benefits.

On February 25th the Minister of Finance of South Africa Pravin Gordham announced that in 2017 the government will launch a tax on the sale of sugar sweetened beverages.

The tax will be levied on the sale of all sugar-added soft drinks, juices, energy drinks, ice teas, and cordials, from April 1st 2017.

The tax is intended to reduce the consumption of sugar sweetened beverages in order to curb the excessive consumption of sugar in the country.

The rate of the new tax has not yet been confirmed, but previous estimates indicate that a tax rate of 20 percent would raise tax revenues of SAR 450 million per year, and would help reduce th...

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Gulf States Will See 5% VAT by 2019

February 25, 2016 Taxation in UAE

No taxes for business in the UAEDUBAI – The countries of the Gulf Cooperation council have agreed to take the landmark step of introducing a cross-border VAT in order to gather non-oil revenues.

By the start of January 2019 all the countries of the Gulf Cooperation Council will see the implementation of a Value Added Tax, according to a statement made on February 24th in Dubai by the UAE Minister of State for Financial Affairs Obaid Humaid Al Tayer.

The new VAT will be implemented and enforced equally across the UAE, Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia.
The new tax will be set at a rate of 5 percent, and will be levied on the sale of all products in the countries, with the only exemptions being healthcare, education, bicycles, and 100 basic food items.

The tax is expected to lead to the collection of an extr...

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Tourist Tax On The Rise in Netherlands

February 24, 2016 Taxation in Netherlands

AMSTERDAM – Collection of tourist taxes is gathering steam in the Netherlands, with millions more expected to be brought in this year compared to 2015, especially in Amsterdam.

Over the course of 2016 the level of tax revenues to be collected from tourist taxes in the Netherlands will rise by 8.6 percent, compared to the level seen last year, according to new information released in a report by the statistical agency of the Netherlands CBS.

It is expected that the tourist tax will result in tax collections totaling EUR 188.6 million over the course of the year.

The tourist tax is paid for each night stayed in a hotel or other accommodation, with the rate being set separately in each municipality across the Netherlands.

The significant rise in the tax revenues to be collected from the tou...

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S.Korea Wont Cut Petrol Taxes

February 23, 2016 Taxation in South Korea

Smog Tax KoreaSEOUL – The government of Korea wont reduce the taxes on petrol, despite the fact that they now far outweigh the price of oil in every litre of petrol sold.

On February 22nd the Finance Minister of South Korea Yoo Il-Ho confirmed that the government would not heed public outcry to reform taxes on oil products.

Currently, a large portion of the price of petrol in Korea is made up of taxes, the majority of which are levied at a preset amount, and not pegged to the price of oil or petrol.

The state currently levies KRW 745.89 in tax per litre of petrol sold, additional taxes on the sale of oil based products bring the average tax bill per litre of petrol to as much as KRW 900 per litre.

It has been estimated that the large fixed taxes impede the reduction in the price of petrol to consume...

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