Category Taxation In Africa

Saudi Arabia Launches Cigarette Tax

June 12, 2017 Taxation in Saudi Arabia

Smoking in Saudi ArabiaRIYADH – Smoking in Saudi Arabia is about to double in price, as the government begins taxing harmful activities.

On June 11th the sale of cigarettes in Saudi Arabia became taxable, resulting in a significant hike to the price of tobacco sold in the kingdom.

The tax on tobacco is set at a rate of 100 percent, and is expected to be passed on entirely to the consumer.

Similarly, a new tax was also enacted on the sale of energy drinks, with a rate set at 100 percent.

Soft drinks have also now fallen into the tax net, however, the rate on such drinks is only 50 percent.

The average price of a pack of cigarettes in Saudi Arabia has now risen to between SAR 18 and SAR 24.

The new tax is intended to raise extra revenues for the government, which has been suffering in the wake of falling oil pri...

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Egypt Tries to Lure Foreign Investment

April 24, 2017 Taxation in Egypt

Foreign Investment in EgyptCAIRO – Cast-strapped Egypt is offering heavy tax discounts to entice foreign companies to invest in the country.

Egypt is currently considering a new legislative proposal which would see foreign companies operating in selected sectors of Egypt’s economy receive substantial tax rebates.

The potential tax rebates could be as high as 40 percent, and would be offered to foreign companies working in food, education, electricity, pharmaceuticals, and manufacturing.

Further, the tax rebate will be accompanied by new measures to ease and speed up the process of launching a business in the country, which had previously taken as long as three years, and would now take as little as 60 days.

The two new measures are aimed directly at sourcing new foreign investment into Egypt, as the country is...

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Nigeria Needs to Boost Tax-to-GDP Ratio

April 24, 2017 Taxation in Nigeria

Taxes in NigeriaABUJA – Nigeria has begun to take steps to boost its tax-to-GDP ratio beyond the miserly level of 6 percent.

Over the weekend at the 2017 Spring Meetings of the IMF-World Bank/IMF in Washington DC the Finance Minister of Nigeria said that the national government must take extra efforts to raise the national tax-to-GDP ratio.

Currently the tax-to-GDP ratio in Nigeria sits at approximately 6 percent, one of the lowest rates in the world.

The Minister said that revenue mobilisation if a key avenue for the government to pursue higher tax returns, adding that the primary focuses should be a growth in non-oil revenues, and an increase in budget transparency.

She further explained that the country’s “unacceptably low level of non-oil revenue” was driven heavily by the failure by tax authoritie...

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Saudi Arabia Comes Closer to Sugar and Tobacco Taxes

April 18, 2017 Taxation in Saudi Arabia

Energy Drinks in Saudi ArabiaRIYADH – Smokers and energy drink aficionados will soon feel the financial sting of hefty new taxes on their vices.

The Shura Council of Saudi Arabia has given its endorsement to a new selective tax measure which will see harmful substances heavily taxed.

The new taxes will apply to carbonated drinks, energy drinks, and tobacco, in an effort to curb the spread of obesity and health problems.

The taxes are also intended to raise an extra SAR 10 billion in tax revenues per year, as part of the government’s plan to close it SAR 279 billion budget gap.

Upon approval of the new measure, carbonated sold in Saudi Arabia will face a tax burden of 50 percent of the sale price, while tobacco and energy drinks will face a tax of 100 percent of the sale price.

The new tax shall now be provided to th...

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Kenya to Launch Tax Amnesty

March 30, 2017 Taxation in Kenya

Kenyan tax amnestyNAIROBI – Kenya is offering a generous tax amnesty to local taxpayers, however, those skipping out on the offer will face investigation.

On March 28th the Deputy Commissioner of the Kenya revenue Agency James Ojee announced that the tax authority would be opening a tax amnesty to allow national tax payers to come clean about their hidden offshore wealth.

Kenyan taxpayers will now be offered the opportunity to file by December 31st 2017 the correct tax returns for the year ending December 31st 2016.

Taxpayers who make use of the tax amnesty to disclose their businesses, property, income and assets overseas, will enjoy a waiver for the taxes, interests and penalties for the years up, and including, to 2016.

Those who do not make use of the tax amnesty will face an investigation to determin...

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