Consumption Tax tagged posts

Canada to Legalise and Tax Marijuana

June 21, 2018 Taxation in Canada

marijuana legalisationOTTAWA – Canada could see as much as CAD 400 million per year in extra tax revenues, following its move to legalize cannabis.

The Canadian government has become the first G7 nation legalize recreational marijuana, and alongside the newly opened up rules come the potential for significant tax revenues for the government.

The sale of marijuana in Canada will be taxed at the higher amount of either the rate of CAD 1 per gram or 10 percent of the retail price.

The revenues gathered from the tax will be split between the federal government and the provincial governments.

The federal government will take the lower of either 25 percent of all tax revenues collected, or CAD 100 million each year.

It is expected that the total amount of sales in the new legal marijuana industry could rise to as m...

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UK Urged to Legalise Marijuana, and Enjoy Tax Revenues

June 5, 2018 Taxation in UK

marijuana legalisationLONDON – If the UK legalized and taxed marijuana, it could use its new tax revenues to cover some of the significant costs of the national healthcare system.

A new report released by the international development organization Health Poverty Action (HPA) is calling on the government of the UK to legalize and regulate the market for recreational and medical marijuana and to use the ensuing tax revenues to fund the national healthcare system.

The researchers at the HPA claimed that many countries in the world are turning towards legalization, and that “…prohibition has failed”.

If legalization and regulation were to take place, and the taxation of marijuana sales was similar to the taxation of alcohol or tobacco, the estimate for the arising tax revenues is between GBP 1...

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Amazon Shuts Out Australians, Blames GST Rules

June 1, 2018 Taxation in Australia

Amazon tax AustraliaCANBERRA – Australia’s new tax rules have led Amazon to shut out Australian shoppers.

On May 31st the international online retailer Amazon announced that it would be geo-blocking Australian shoppers from their US website.

Users located in Australia would still be able to us the Australian section of Amazon.

Amazon is taking the move to lessen the tax compliance burden arising from Australia’s new rules regarding GST on internet purchases.

The Australian government has set in place new rules to mandate that online retailers reaching a pre-set sales threshold must register for GST in Australia, and collect the 10 percent tax from all sales made in Australia.

Previously goods worth less than AUD 1000 and purchased overseas could be brought into the country without facing the tax.

The T...

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Peru Enacts Sugar Tax

May 11, 2018 Taxation in Peru

can of cokeLIMA – Peru joins the list of nations levying a tax on sugary drinks.

On May 10th the government of Peru announced that it will implement significant new taxes on sugary drinks, and a handful of other products regarded as being bad for the nation’s health.

Sugary drinks with more than 6 grams of sugar per 100 ml will see a tax of 25 percent, while drinks with less sugar will see a reduced rate of 17 percent.

The tax will apply not only to sugar-sweetened beverages, non-alcoholic beers, and juice drinks.

Exemptions from the new tax will be granted to pharmaceutical drinks and enriched milk products aimed at mothers and babies.

Similar tax hikes will also be enacted on alcoholic drinks, tobacco products, and gasoline.

The new measures are aimed at combating the rising instances of obesi...

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China Cutting Business’ Tax

May 8, 2018 Taxation in China

Bund Sunrise April 16 2018 in Shanghai ChinaBEIJING – Chinese firms are being given tax cuts, and encouraged to spend their savings on technology and training.

Late last week the government of China announced that it will be implementing a series of tax cuts for businesses, ultimately aiming to help modernize the economy by encouraging extra spending on greater use of technology and staff upskilling.

The government are dropping the rate of VAT for businesses, based on the industry in which they operate.

The sale of goods will now see a VAT rate of 16 percent, compared to 17 percent, while businesses in transportation, logistics, and construction will see their tax rate drop from 11 percent to 10 percent.

No changes will be enacted to the already reduced rate of 6 percent for businesses operating in financial or consumer services.

Te...

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