Consumption Tax tagged posts
April 21, 2017 Taxation in USA
On April 18th the results of a new study were published in the medical journal PLOS Medicine, with an evaluation of the outcomes of the first tax on sugar sweetened beverages enacted in the USA.
In March 2015 a “penny per ounce” tax was added to the sale of sugar-sweetened beverages in the USA, a measure which saw an effective cost hike of USD 0.12 per can of drink sold, and a rise of USD 0.68 per two litre bottle sold.
The results of the study suggested that the overall sales of the drinks fell by nearly 10 percent during the course of the past year.
It was also seen that bottled water, and other untaxed...Read More
April 18, 2017 Taxation in Saudi Arabia
The Shura Council of Saudi Arabia has given its endorsement to a new selective tax measure which will see harmful substances heavily taxed.
The new taxes will apply to carbonated drinks, energy drinks, and tobacco, in an effort to curb the spread of obesity and health problems.
The taxes are also intended to raise an extra SAR 10 billion in tax revenues per year, as part of the government’s plan to close it SAR 279 billion budget gap.
Upon approval of the new measure, carbonated sold in Saudi Arabia will face a tax burden of 50 percent of the sale price, while tobacco and energy drinks will face a tax of 100 percent of the sale price.
The new tax shall now be provided to th...Read More
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