Consumption Tax tagged posts

Sugar Taxes Aren’t the Full Solution

November 8, 2017 Taxation in New Zealand

Tax on sodaWELLINGTON – New Zealand needs to look beyond a simple sugar tax, and weigh up a tax on all processed foods.

On November 7th Exercise NZ released a media statement, saying that taxes on sugary drinks is only a part of the problem of addressing the nation’s obesity problem.

It was noted that some countries have already begun implementing a tax on sugary drinks, however, the measures have only had a limited effect on drinks consumption.

The reason for the lack of success was that sugar-sweetened beverages are relatively cheap, and adding a small tax to their sale still leaves the drinks as a cheap product.

It was suggested that instead of a singular tax on one type of food item, a series of taxes should be applied to a number of processed foods, with the collected funds to be used to pay...

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South Korea to Tax Vapes

October 31, 2017 Taxation in South Korea

Vape taxSEOUL – E-cigarettes and other cessation devices may soon be taxed the same as cigarettes in Korea.

The government of South Korea is mulling a change in tax legislation which could see a significant spike in the price of-cigarettes.

In November this year, lawmakers are expected to vote on a bill to enact a 90 percent tax on the sale of e-cigarettes and heat-not-burn cigarettes.

The tax will roughly match the tax treatment of regular cigarettes and tobacco products.

If the measure is approved, it could come into effect as early as December this year.

E-cigarettes have proved to be highly popular in South Korea, with imports of e-liquids rising from 12 tons in 2015 to 61 tons in the first eight months of 2017.

Some industry experts noted that over the last few years, the government has e...

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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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