Category Taxation in Asia-Pacific

Tax Working Group Wants to Make NZ a Better Place

March 6, 2018 Taxation in New Zealand

Tax Working Group NZWELLINGTON – A new working group is weighing up the pros and cons of introducing sugar taxes, environmental taxes, and capital gains tax in New Zealand.

In a speech given on March 2nd the head of the New Zealand Tax Working Group, Michael Cullen, provided an indication of the future of taxation in New Zealand.

The Tax Working Group was established by the government at the end of last year to evaluate new tax measures and the potential impact that those tax measures will have on the country.

Michael Cullen provided an indication that the Group would focus on taxes which are aimed at changing taxpayers’ behaviour, such as taxes on goods and activities associated with obesity.

The Group will also tackle the questions of new environmental taxes and the taxation of water extracted for comme...

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NZ Enjoys Tax Boost

February 15, 2018 Taxation in New Zealand

NZ tax revenuesWELLINGTON – The New Zealand government has enjoyed a bout of increased tax revenues, despite an increase in its expenditures.

The New Zealand Treasury started this week by announcing that the tax revenues seen by the government, and, subsequently, the operating balance for the six months to December 31st 2017 were significantly higher than expected.

The Core Crown tax revenue for the period was NZD 37.2 billion, a level which is NZD 0.6 billion ahead of the forecast in the 2017 Half Year Economic and Fiscal Update.

The increased tax revenues were made up primarily of a NZD 0.3 billion boost to source deductions, and a NZD 0.2 billion boost to GST collections.

Along with the higher than expected revenues, there was also a higher than expected result to the expenditure of the government...

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Electric Cars Cutting NZ Road Funds

January 31, 2018 Taxation in New Zealand

electric vehicle taxesWELLINGTON – Electric cars could be jeopardizing the future of New Zealand’s highways.

The principal adviser for the Automobile Association of New Zealand, Barney Irvine, has issued a warning that the increasing uptake of electric vehicles in the country could threaten the funding needed to maintain and develop the national road infrastructure.

Currently, the maintenance, upgrades, development, and police enforcement of the national highway system is funded from the National Land Transport Fund.

The money used in the fund is derived from the tax levied on the sale of petrol, with approximately NZD 0.50 per litre being diverted to the fund.

Diesel cars also contribute to the fund via an annual tax bill levied at a rate of approximately NZD 0...

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Calls Rise for Sugar Tax in New Zealand

January 17, 2018 Taxation in New Zealand

sugar taxWELLINGTON – New Zealand’s sugar-laden drinks industry is facing calls for a sugar tax to help alleviate the country’s obesity problem.

New research published this week in New Zealand shows that the sugar-sweetened drinks in the country have a much higher sugar content compared to their counterparts in the UK, Australia or Canada, leading researchers to renew their call for a tax on such drinks.

It was shown that approximately 52 percent of drinks purchased in NZ contained sugar, while in the UK, Canada, and Australia the portions were 9 percent, 42.8 percent, and 42.2 percent respectively.

Along with having a high portion of sweetened drinks being sold, the beverages in New Zealand also have a very high sugar content, in some cases being 50 percent more than their overseas alternatives.

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Vaping To Be Taxed More in Indonesia

January 13, 2018 Taxation in Indonesia

VapingJAKARTA – Vaping may make way for smoking in Indonesia, if consumers find tax burdens too high.

According to a new announcement from the government of Indonesia, the sale of e-cigarettes in the country will now be subject a significant new tax.

From July 1st 2018 e-cigarettes sold in Indonesia will face a tax of 57 percent.

Supporters of e-cigarettes, or vapes, have claimed that the rate of the tax is too high, and that the new measure will reduce demand for the tobacco alternative.

It has even been claimed that the relative increase in the price of the e-cigarettes will lead to a greater uptake of traditional tobacco products.

However, Heru Pambudi, the head of Customs of Indonesia, has said that the government fully considered the impact of the tax before making the decision to enact th...

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