budget tagged posts

Kenya to Reform VAT, Close Loopholes

June 14, 2013 Taxation in Kenya

kenyaNAIROBI – Kenya is looking to boost revenues and improve the economic situation in the country by closing existing tax loopholes and by updating the VAT system.

On June 13th the Secretary of the National Treasury of Kenya Henry Rotich released in Parliament the national budget for the 2013 fiscal year, outlining the government’s plan to raise tax revenues by an extra 7.5 percent compared to the previous year, in order to provide extra funds for new infrastructural projects and development initiatives.

The Kenyan Revenue Authority (KRA) expects that some of the extra tax revenues will come as a result of efforts to eliminate tax evasion committed by owners of rental properties, with the KRA setting out to build a cohesive database of all rental properties in the country, and enforcing stric...

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Italy Narrows Budget Deficit

May 30, 2013 Taxation in Italy

Via Pietro Capuano, Amalfi - Italy flagBRUSSELS – Italy’s budget deficit has reached an acceptably low level, and the European Commission has given its approval to the government’s plan of dropping property taxes for this year.

On May 29th the European Commission ruled that Italy’s has made enough corrections to its fiscal position and will no longer be subject to the EU Excessive Deficit Procedures.

Under the provisions of the EU Stability and Growth Pact, all member states should maintain their deficit-to-GDP ratios at below 3 percent, and are required to maintain their debt-to-GDP ratios at less than 60 percent, and any country that is found to breach the outlined conditions may be subject to corrective procedures, which may include sanctions.

In its report on Italy’s budget deficit, the European Commission stated that it do...

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Constitutional Court Decision Derails Portugal Budget Plan

April 8, 2013 Taxation in Portugal

2 eurLISBON – Following a recent decision of the Constitutional Court, Portugal is once again scrambling to find new sources of revenues, but tax hikes have already been ruled out by the Prime Minister.

In a televised broadcast aired on March 7th the Prime Minister of Portugal Pedro Passos Coelho announced that the government will now look at further reducing the public funding granted to education and health programs in the country, following a decision by the Constitutional Court which ruled that several parts of the government’s proposed revenue saving plan couldn’t not be allowed to go forward.

Late last week the Constitutional Court of Portugal rejected four (worth EUR 1...

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UK Cuts Taxes in New Budget

March 21, 2013 Taxation in UK

Chancellor George Osborne on Budget DayLONDON – Individuals and businesses in the UK will soon see some reductions in their tax obligations, as the government reveals a series of tax cuts while announcing the new national budget.

Late on March 20th the Chancellor of the Exchequer of the UK George Orborne unveiled the annual government budget, which, according to the HM Revenue and Customs, revolves around the principals of fiscal responsibility and monetary activism.

Amongst the changes revealed in the budget, one of the key points announced is an increase to personal tax allowances, which raises the tax free threshold for workers to GBP 10 000, effectively ensuring that from April 2014 more then 3 million individual taxpayers in the UK will no longer be liable to pay personal income taxes.

The increase to the tax free threshol...

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Hong Kong Spends Surplus on Social Boosts

February 28, 2013 Taxation in Hong Kong

Hong KongHONG KONG – Hong Kong has seen an unexpected budget surplus, and will now distribute the extra funds back to its citizens in the form of social assistance.

On February 27th the Financial Secretary of Hong Kong John Tsang unveiled the latest government budget for the territory, announcing nearly HKD 33 billion in once-off increases to social spending, welfare payouts and assistance programs for low income individuals.

John Tsang revealed that, while the government had anticipated a budget deficit of HKD 3.4 billion for the fiscal year ending March 31st, the better than forecast economic growth of Hong Kong and unexpectedly high tax collections have led to a surplus of HKD 64.9 billion for the year.

The advantageous financial position has allowed the government to expand its spending on soci...

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