Consumption Tax tagged posts

Drinks and Smokes Targeted for Tax in UAE

October 2, 2017 Taxation in UAE

Drinks CansABU DHABI – Drinking energy drinks and smoking cigarettes is about to become more expensive in the UAE.

On October 1st the United Arab Emirates began collecting sin-taxes on selected products deemed to be harmful to human health, with the newly raised funds being used to plug the growing deficits seen by the government over recent years.

The new taxes have come to be called “sin taxes” and will be levied on the sale of cigarettes, tobacco, soft drinks, and energy drinks.

The rate of the tax has been set at 100 percent for the sale of energy drinks and tobacco, and a smaller rate of 50 percent of soft drinks.

The “sin tax” is the precursor for further taxes to be enacted in the near future, with a 5 percent VAT to be levied from January next year on selected goods.

The new taxes ...

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South Africa’s Sugar Tax Approaches

September 6, 2017 Taxation in South Africa

tax on sugary drinksJOHANNESBURG – South Africa’s sugar tax will come into effect in April 2018, however, nobody knows exactly what the tax will look like.

At a joint meeting of Parliamentary health and finance committees in South Africa it was indicated that the country’s proposed tax on sugar sweetened beverages may come into force by April 2018.

However prior to the tax being enacted, the government must still decide on the exact rate of the new tax.

Initially the government hoped to introduce the tax at a rate of 20 percent.

Currently, the government’s proposal has been diluted to a rate of 10 percent at the time of introduction, with gradual increases to the rate as time goes on.

Alternatively, industry leaders are calling for the government to introduce a further watered down tax which would reach ...

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Irish Tax Will Lead To Smuggling

September 4, 2017 Taxation in Ireland

Soda TaxDUBLIN – Ireland would be opening the door to smuggling if it introduces a tax on soda.

Late last week the Irish Beverage Council, an industry advocacy group operating in Ireland, states that tax authorities would see a significant loss of revenues if the government enacted a tax on sugary beverages next year, as is currently planned.

The group claimed that if the tax on sugary-sweetened beverages is enacted, then consumers will begin sourcing a portion of their drinks from Northern Ireland, which will foster the creation of a grey-market for such drinks.

It is estimated that the tax would result in an 11 percent loss in sales due to smuggling.

The loss in sales would equate to an EUR 30 million loss in retailer sales, and a proportionate loss in tax revenues.

In comparison, the tax itse...

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Kuwait Prepares Tax on Unhealthy Goods

July 17, 2017 Taxation in Kuwait

Consumption tax KuwaitKUWAIT – Kuwait will soon and that taxes on unhealthy products in an effort to raise taxes while reducing its reliance on oil revenues.

It has been reported by local news sources in Kuwait that the national Ministry of Finance has prepared a new bill for the implementation of new taxes on the sale of tobacco, soft drinks, and energy drinks.

The new tax falls in line with the taxes agreed upon for such products by the members of the Gulf Cooperation Council.

The new tax will be applied to the sale of tobacco and energy drinks at a rate of 100 percent, while the rate applied to soft drinks will be set at 50 percent.

The original tax scheme agreed-upon by the members of the Gulf Cooperation Council also called for a 100 percent tax on alcoholic beverages and pork, however, these products a...

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NZ Needs Sugar Tax, Says Jamie Oliver

June 29, 2017 Taxation in New Zealand

Jamie OliverWELLINGTON – Jamie Oliver is saying the New Zealand government could see an increase in revenues while also improving the health of children in the country by imposing a tax on sugar.

The internationally recognised chef Jamie Oliver has struck out at the New Zealand government over its inaction towards implementing a tax on the sale of sugary drinks.

Jamie Oliver’s criticism was delivered via a video which was recorded especially for the Fizz Symposium, which was held in Auckland on June 26th to discuss the possibility and practicality of a potential tax on sugary drinks.

It was claimed by Jamie Oliver that the new tax would be “new money for the children of New Zealand”.

He stressed that if a tax on sugary drinks was implemented, the newly raised funds should be earmarked and used...

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