Tax Reform tagged posts

Tax Overhaul Needed To Fund Election in Congo

June 5, 2015 Taxation In Africa

KINSHASA – The Democratic Republic of Congo needs to raise an additional USD 1.1 billion in taxes in order to run an election without compromising regular services and infrastructure.

In a statement issued on June 5th the International Monetary Fund recommended that the government of the Democratic Republic of Congo should urgently implement measures to reform taxes in order to raise the funds needed to pay for the upcoming national elections.

It is estimated that the cost of holding the presidential election and the series of votes leading up to the election will be as much as USD 1.1 billion, while the total national budget over the 2015 year is only USD 9 billion.

The IMF recommended that the government sets out to overhaul the tax administration system to increase efficiency ad boost...

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Puerto Rico Rejects Tax Proposal

May 1, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is facing doubt over its upcoming debt issuances , as the government rejects calls to reform taxes.

On April 30th the House of Representatives of Puerto Rico voted 28 to 22 to reject a proposed round of tax changes aimed at helping the country attract foreign investment and to fix the current budget deficit.

Under the details of the proposal, the current 7 percent sales tax would have been replaced with a value added tax levied at 16 percent.

Legislators also rejected alternative measures such a replacing the 7 percent sales tax with a sales tax levied at 1 percent alongside a value added tax set at 13 percent.

Shortly following the rejection of the proposal the Governor of Puerto Rico Alejandro Garcia Padilla held a televised national address in which he said that...

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Puerto Rico to Launch Tax Reform

February 12, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is looking at introducing VAT, and using the newly collected funds to reduce income taxes and provide regular payments to low-income earners.

On February 11th the Governor of Puerto Rico Alejandro Garcia Padilla stated that the government will now consider enacting a significant tax reform in order to help boost the national economy, improve equality, and raise tax revenues.

The overhaul would revolve around the introduction of a Value Added Tax set at a rate of 16 percent, to replace the currently enforced sales tax at a rate of 7 percent.

It is believed that the change from sales tax to value added tax will remove some of the tax burden faced by individuals and place it on businesses, and would boost compliance levels from the currently estimated 56 percent to a l...

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Chile Approves Extensive Tax Reform

September 11, 2014 Taxation in Chile

CHILE – The government of Chile will use an array of new tax hikes to fund universal free education in the country.

On June 11th the Congress of Chile voted on and approved a new tax reform bill, which will raise taxes and provide funding for new projects aimed at reducing inequality in the country.

Under the conditions stipulated in the reform bill, the government will drop the current Taxable Profits Fund, which allows companies to obtain tax credits for reinvesting their profits.

Corporate tax system will also be overhauled, with companies now given the option of either paying 27 percent corporate income tax, with the ability to claim limited tax deductions for reinvesting some profits into pre-approved activities, or the alternative choice of paying a headline rate of 25 percent on cor...

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Caution Urged on Tax Reform in Philippines

September 4, 2014 Taxation in Philippines

Tax Reform in PhilippinesMANILA – While it is agreed that taxes in the Philippines are growing too fast, caution has been urged on implementing any tax cuts, as the reduction may cause significant revenue drops.

On September 3rd the undersecretary of the Department of Finance of the Philippines Jeremias Paul urged the members of the national House Ways and Means committee to re-examine and take a holistic approach to any tax reforms to be enacted in the country, claiming that the currently proposed round of income tax rate reductions may significantly reduce the country’s GDP.

Jeremias Paul claimed that if income tax rates were reduced, as is currently proposed, the loss in revenues would amount to between 0.3 percent and 1.5 percent of the national level of GDP.

The undersecretary’s comment come only days afte...

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