Category Taxation In Africa

South Africa Loses Billions in Taxes To Illicit Cigarettes

July 6, 2018 Taxation in South Africa

Illicit cigarettes South AfricaJOHANNESBURG – Cigarette manufacturers in South Africa are fuelling the market for illegal tobacco, where a pack of cigarettes costs less than the tax due on their sale.

According to a new report completed and released by the South African Revenue Service (SARS), the national government is losing billions each year due to the prevalence of illicit cigarette sales. ‘

Approximately three-quarters of all informal shops surveyed across the country appeared to be selling illicit cigarettes.

Currently, a pack of cigarettes in South Africa would carry a minimum tax obligation of SAR 17.85 per pack.

However, the illicit cigarettes were priced lower than the tax, in some cases being as cheap as SAR 5 per pack.

It is impossible that the full tax obligation can be met on the sale of cigarettes that c...

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Uganda Launches Social Media Tax

July 2, 2018 Taxation in Uganda

social media tax ugandaKAMPALA – Uganda’s social media tax has come into effect, blocking access for anyone who has not paid a new daily tax.

Over the weekend the government of Uganda launched its new tax on the use of social media and mobile communication platforms.

From July 1st, any mobile users in Uganda who had not paid the new tax was barred by their service provider from accessing media platforms such as Twitter, Whatsapp, Skype, and Facebook.

The tax is levied at a rate of UGX 200 per day, and must be paid via an electronic payment system to the mobile service provider in order to unlock the social platforms.

The government claims that the new tax will raise funds to be used for free education, healthcare, and roading.

However, opponents of the tax are claiming that the system is stifling communicatio...

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Egypt Hikes Petrol Prices

June 18, 2018 Taxation in Egypt

Fuel tax EgyptCAIRO – Taxpayers across Egypt will soon be feeling a greater financial burden, hikes petrol prices and gas prices by as much as 50 percent.

Over the weekend the Oil Minister of Egypt Tarek el-Molla announced that the price of petrol and cooking fuel will be hiked, as part of the government’s austerity measures.

Egypt’s ongoing slashes to subsidies are part of a deal with the International Monetary Fund, which is calling for economic reform as part of a USD 12 billion loan package.

The price of 92-octane gasoline will now rise by 34 percent, while the price of 80-octane will rise by nearly 50 percent.

The less popular 95-octane gasoline will also rise, but only by a comparatively smaller level of 17.5 percent.

The hikes are not restricted to transport fuel only, with the gas often use...

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Seychelles Drops Tax on Soy Milk

June 13, 2018 Taxation in Seychelles

Soy Milk TaxMAHE – The government of Seychelles wants people to ditch cow milk and drink soy milk, and they are offering tax incentives for those who do.

On June 8th the Cabinet of the island nation of Seychelles approved the removal of duties from the sale of non-dairy milk alternatives.

Previously all milk drinks were levied with a 25 percent duty.

The duty applied to not only dairy-based milks, but also to non-dairy alternatives such as soy milk, rice milk, almond milk, and other plant-based milks.

Now the 25 percent duty will no longer apply to the plant-based milk alternatives.

It was explained that “…the cabinet of ministers decided to remove all duty on these plant-based milk products to support people who are using them and to encourage others to follow suit for their health benefit.”

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Uganda Passes Mobile Money Tax With Mistakes, Says Finance Minister

June 6, 2018 Taxation in Uganda

Mobile money UgandaKAMPALA – Uganda has gone ahead with its controversial 1 percent mobile money tax, but the finance minister claims that the rate and target of the tax was approved by accident.

Uganda has passed a new tax on mobile money transfers, however, the national Finance minister Matia Kasaija has said the passing was made by mistake.

Under the newly passed tax, transfers made using a mobile money system by a taxpayer in Uganda will be liable for a tax of 1 percent of the value of the transfer.

Mobile money is a popular financial tool for individuals who do not have access to traditional banks and banking facilities.

Taxpayers using mobile money can send or receive payments almost instantly using their mobile phones.

The Finance Minister has now claimed that the initial agreement between the ruli...

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