Pakistan Ordered to Drop Mobile Charge Taxes

June 12, 2018 Taxation in Pakistan

Mobile charge PakistanISLAMABAD – Mobile top-ups may go untaxed in Pakistan, if only temporarily.

On June 11th the Supreme Court of Pakistan ordered that all tax withheld from the sale of mobile phone recharge and top-up cards be stopped, at least temporarily.

The judges remarked that currently, the sale of mobile charge cards carries too heavy a tax burden, as approximately 42 percent of the value of a PKR 100 charge card actually ends up as taxes.

Approximately 19.5 percent of the total tax load is made up of Federal Excise Duties, another 12.5 percent goes towards Withholding Tax, and another 10 percent becomes service and maintenance charges.

The judges ordered that a new comprehensive taxation plan be devised for mobile charge cards, in lieu of the current system.

Phone companies and tax authorities hav...

Read More

Israel Enacts Surprise Tax Hike on Luxury Electric Cars

June 11, 2018 Taxation in Israel

TeslaTEL AVIV – Consumers buying luxury electric cars in Israel have received an unwelcome surprise in the form of a tax hike.

Over the weekend the Minister of Finance of Israel Moshe Kahlon announced that an order has been signed to hike the taxes imposed on the sale of luxury-level electric vehicles sold in the country.

Previously, electric cars bought in Israel would face a purchase tax of 20 percent, while hybrid vehicles would face a tax rate of 30 percent.

However, following the new order, the rate of purchase tax on both vehicles types will rise to 34 percent and 44 percent for electric and hybrid vehicles, respectively, for vehicles with prices exceeding ILS 300 000.

It is believed that high-end electric vehicles made up nearly half of all sales of electric cars and hybrid cars over t...

Read More

Bangladesh Hikes Rice Import Taxes

June 8, 2018 Taxation in Bangladesh

Rice in BangladeshDHAKA – The rice industry in Bangladesh is recovering, and the government is aiming to protect it with heavy import taxes.

Bangladesh will impose a tax of 28 percent on all rice imports coming into the country, a move which is aimed at protecting local production.

The total tax of 28 percent will be made up of 25 percent in customs duties and an extra 3 percent in regulatory duties.

In 2017 the rate of rice imports was much lower, as it was cut to a total of only 2 percent.

The fluctuations in the rate of tax for rice imports is based on the production capability and pricing of rice in Bangladesh at that time.

Last year’s tax cut was caused by a steep increase in the price of rice produced in Bangladesh due to heavy flooding which destroyed crops.

Comparatively, this year’s increase...

Read More

Tax Freedom Day Falls in Poland

June 7, 2018 Taxation in Poland

Tax Freedom day PolishWARSAW – Tax Freedom Day has come in Poland, and it has arrived three days earlier than last year.

June 6th was the date of Tax Freedom Day in Poland for the current year, according to the latest calculations completed by the think-tank the Adam Smith Centre.

Tax Freedom Day is a symbolic measure of the tax burden faced by taxpayers in any given country.

The date of the Tax Freedom Day is calculated by comparing the total tax burden in a country, and comparing that to the total tax take in the same area for the same timeframe.

Tax Freedom Day is intended to represent the point in time where taxpayers would have earned enough to pay off their tax obligation for the year.

In 2017 Tax Freedom Day in Poland was on June 9th, 3 days later than in 2018.

The movement in the Tax Freedom Day date...

Read More

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...

Read More