Consumption Tax tagged posts
March 17, 2017 Taxation in Canada
New research completed at the University of Waterloo has indicated that a 20 percent tax on sale of sugary drinks in Canada could save thousands of lives while also raising tax revenues.
It was concluded that if a tax of 20 percent was applied on the sale of all sugary drinks, including energy drinks and selected fruit juices, then the government would see tax revenues rise by CAD 1.7 billion per year, equating to approximately CAD 43.6 billion over the next 25 years.
Along with the extra tax revenues, the government would see savings of CAD 11.5 billion over the same timeframe, due to reduced expenditures on healthcare services.
The drop...Read More
March 14, 2017 Taxation in Brazil
A new ruling by the Supreme Court of Brazil has enshrined the idea that digital books should enjoy the same tax treatment as their physical counterparts.
In September 2016 a debate began regarding the taxation of e-books, with some parties claiming that the digital products should not face taxation, while opponents claimed that the rules should be restricted to physical books only.
The tax breaks on books stems from legislation in Brazil which protects books from taxation as a matter of freedom of speech.
The Supreme Court has now ruled that the digital versions of books are practically indistinguishable from their physical versions, ...Read More
March 9, 2017 Taxation in UK
On March 8th, the chancellor of the exchequer of the UK Philip Hammond announced that VAT will soon be applied to the roaming charges incurred by UK tourists.
The VAT will be levied on the roaming charges incurred by individuals using the services of a UK-based mobile-provider, when they are travelling outside of the EU-bloc.
The VAT will be levied at a rate of 20 percent, meaning that the cost of using roaming services while travelling will rise by 20 percent for all UK SIM card holders.
The Chancellor claimed that the new tax measure was introduced to combat tax evasion, and also to bring the tax treatment of roaming charges in line ...Read More
March 8, 2017 Taxation in EU
On March 7th, the European Court of Justice ruled that no member-states of the EU may apply a reduced rate of VAT on the sale of digital books, newspapers, or other publications.
According to current EU regulations, EU-member countries are allowed to apply a reduced rate of VAT on the sale of books, a tax measure which is aimed at increasing the instances of reading throughout member countries.
The reduced rates would also apply to newspapers, and other printed materials.
The Court was brought forward to interpret the rules regarding the application of VAT on books and newspapers, following a legal challenge where some EU-member states claimed that the reduction of VAT on e-books and ...Read More
March 5, 2017 Taxation in Mexico
New research conducted by Shu Wen Ng, health economist and a professor at the University of North Carolina in Chapel Hill, has indicated that the recent tax on the sale of sugary beverages in Mexico has significantly cut down the consumption of such drinks.
It is estimated that in 2015 the sale of sugary drinks fell by 9.7 percent, compared to the level that the sales would have been had the tax not been enacted.
In the prior year, the consumption fell by 5.5 percent, bringing the average to the 7.6 per year over the course of the tax so far.
The tax did not have an equal effect on consumers from various socio-economic groups,...Read More