Category Taxation in Asia-Pacific

IMF Publishes NZ Fiscal Policy Advice

May 27, 2010 Taxation in New Zealand

International Monetary Fund [oct 25]The International Monetary Fund (IMF) has published a new paper on the potential effect of further fiscal policy changes in the future growth of the New Zealand economy.

On May 26th the IMF published The Potential Contribution of Fiscal Policy to Rebalancing and Growth in New Zealand, a working paper dealing with possible New Zealand fiscal policy rebalancing. The paper stated that New Zealand has weathered the global economic recession relatively well, but will continue to suffer from persistent current account deficits. New Zealand also has low per-capita income levels, when compared to other advanced economies. In response to these two issues, the paper advises decreased Government spending and tax balance shifts for New Zealand.

The paper specifically suggests that the New Zealand Gove...

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New Zealand Budget Released

May 20, 2010 Taxation in New Zealand

BeehiveThe New Zealand Government has released its 2010 Budget. The announcement outlines various changes to the taxation system, putting to rest months of media speculations surrounding New Zealand’s tax future.

On May 20th the New Zealand Government revealed its national budget for the year 2010. The latest budget aims to reduce the impact of last year’s recession while introducing a range of fiscal stimulus measures and providing a solid base with which the Government can maintain control of the nation’s economy.

The Budget announcement revealed a number of significant alterations to New Zealand’s tax system. As expected by most economists, the Government has confirmed that the Goods and Service Tax (GST) rate will be raised to 15 percent from the current rate of 12.5 percent.

The incre...

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Asian Economies Warned of Capital Spikes

May 19, 2010 Taxation in ChinaTaxation in Hong KongTaxation in IndiaTaxation in PhilippinesTaxation in SingaporeTaxation in South KoreaTaxation in ThailandTaxation in Vietnam

Independence Monument - Phnom Penh, CambodiaGovernments of emerging Asian economies have been warned to be ready for sudden increases in investment capital inflows, and prepare appropriate policy responses.

On May 18th the Asian Development Bank (ADB) released its annual Asian Capital Markets Monitor report, which investigates the performance and outlooks for the equity, bond and currency markets in emerging economies. According to the report, several factors have cumulatively increased the risk of Asian economies facing sudden high levels of investment capitals, leading potential destabilization of currency and financial markets.

Amidst worries of a continued national debt crisis in Greece and the Euro-zone, international investors have been paying greater attention to Asian economies...

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Australian National Budget Released

May 12, 2010 Taxation in Australia

Financial crisis will hurt jobs, Swan warnsThe Australian Government has released its national budget for the 2010-2011 financial year. The tax system changes and spending cuts detailed within the new budget are expected to return the Government spending to a surplus within two years.

On May 11th the Australian Government publicized the 2010-2011 Commonwealth Budget, which “further strengthens the economy and secures future growth.” According to a statement released alongside the Budget, strict adherence to the planned stipulations will result in net Government debts peaking at 6.1 percent of GDP, half of the Government’s previous projections and only one tenth of the level currently seen across major advanced economies. The national budget deficit will reach AUD 40.8 billion (approx. USD 36.5) in 2010-2011, which is AUD 16...

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Philippines Urged to Change Tax Balance

May 11, 2010 Taxation in Philippines

Palacio del Gobernador 2Corporate and personal income taxes in the Philippines should be lowered to 25 percent, and Value Added Tax (VAT) raised to 15 percent, according to the Department of Finance (DOF) of the Philippines.

On May 10th the DOF issued a general statement to the next Government administration coming into power after the national elections, saying that the current national tax balance should be changed. The DOF claimed that PHP 73.92 billion could be raised if the recommended changes are carried out by the year 2015. The DOF suggested that VAT should be raised from the current level of 12 percent to 15 percent, personal and income taxes lowered to 25 percent, along with simplification of the personal income tax assessment structure and excise taxation on tobacco and alcoholic products...

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