Consumption Tax tagged posts

US Cell Phones Excessively Taxed

February 21, 2011 Taxation in USA

Cell PhoneUS state tax authorities are targeting cell phone owners as an easy way to raise large sums of tax revenues, leading to the relative overtaxation of mobile phone use, with many taxpayers seeing more than a fifth of their bills comprised of taxes.

On February 18th the Tax Foundation released States Target Cell Phones for Stealth, Burdensome Taxes, a report examining the difference in tax burdens faced by mobile phone users across all US states. The report revealed that average US cell phone user will see approximately 11.21 percent of their usage bill comprised of state and local taxes, and an additional 5.05 percent in federal taxes.

Mobile users in the state of Nebraska faced the highest tax liabilities, at an average tax rate of 23.69 percent...

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Japanese PM Attempts to Find More Supporters for Tax Plans

February 4, 2011 Taxation in Japan

Naoto Kan - World Economic Forum Annual Meeting 2011The Prime Minister of Japan has clarified his position on future tax reforms, in an attempt to seek more support among leading opposition parties.

Only days before a meeting of a Japanese government panel is scheduled to take place, further disagreement are arising between Japan’s two most prominent political parties (Democratic Party of Japan and opposition Liberal Democratic Party) as they continue to clash over the future of the country’s tax system. As it was informed the meeting, dedicated to discussing potential reforms to the country’s tax system, will take place on February 5th. The primary issues up for initial discussions are the final round of discussions regarding a rise to the national consumption tax rate and a reform of the country’s social security system.

Speaking at t...

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Consumption Tax Issue Heats Up in Japan

January 19, 2011 Taxation in Japan

Watermark on Japanese 10,000 Yen Note, Macro PhotoConsumption tax rates have once again risen as a political battlefield in Japan, with the Prime Minister leading the charge for a raised tax rate and widespread reforms to the country’s tax system.

On January 18th Finance Minister of Japan Yoshihiko Noda announced that the Government would attempt to instate a range of sweeping tax system reforms by March 2012, in an attempt to increase long-term tax revenues, and reduce the national health-care and social security costs. The Minister did not reveal what changes are envisioned, but he explicitly stated that an increase to the current 5 percent consumption tax rate would be sought, along with an array of spending cuts.

On the same day, the Prime Minister Naoto Kan made an even more ambitious promise, saying that cross-party negotiations f...

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UK Instates Controversial Tax Increase

January 5, 2011 Taxation in UK

George Osborne, MP (Shadow Chancellor of the Exchequer)The UK has raised its national Value Added Tax rate to 20 percent, and the Chancellor of the Exchequer once again reiterated that the rate will not drop in the foreseeable future.

On January 5th UK taxpayers saw their average tax liabilities increase after tax authorities instated the promised rate hike to the national Value Added Tax (VAT). The move has been a matter of debate since its announcement in July 2010, but the Chancellor of the Exchequer George Osborne is still maintaining that the rise was the best possible move for the national economy.

As of January 4th all transactions in the UK applicable for VAT will be levied at a rate of 20 percent, compared to the previous rate of 17.5 percent...

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Pakistan Needs New GST System

December 31, 2010 Taxation in Pakistan

Rupee ,Currency of Pakistan ( Coins )At a recent conference Pakistan’s potential Reformed Goods and Service Tax was discussed in detail, with experts agreeing that the tax needs to be implemented as soon as possible to ensure the country’s economic health.

On December 30th the Pakistan Institute of Development Economics concluded a three-day conference, concerning the current financial situation and future economic outlook of the country, held in Islamabad. Among the numerous discussions held at the conference was a series of presentations about the potential implementation of a Reformed Goods and Service Tax (RGST) in Pakistan.

Speaking on the second day of the conference Dr Hafiz Pasha, a leading academic economist, claimed that the country’s fiscal future would experience a strong downward spiral unless RGST is implement...

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