tobacco taxation tagged posts

NZ Government Wants Tobacco Tax, Not Vapes

August 13, 2018 Taxation in New Zealand

Taxes on vapes in NZWELLINGTON – Despite being healthier than smoking, tobacco products are being labelled as being just as dangerous in New Zealand, all for the sake of tax revenues.

On August 10th the New Zealand Taxpayers’ Union (TPU), a tax advocacy group, issued a press release claiming that the government of New Zealand is choosing to pursue tax revenues instead of helping smokers kick the habit.

The TPU claims that regulations will require tobacco-alternatives to be packaged in a manner which would deer smokers from using the healthier alternatives.

Tobacco alternatives sold in New Zealand will soon be required to be labelled with the same anti-smoking labels as regular cigarettes, and the requirement extends to non-combustion products such as e-cigarettes, heated tobacco and snus.

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Bahrain Taxes Vape Liquids Like Cigarettes

July 26, 2018 Taxation in BahrainTaxation in Qatar

Vape liquid taxMANAMA – Despite the fact that vape liquids do not contain tobacco, the government of Bahrain is taxing them at the same rate as cigarettes.

Public outcry is rising in Bahrain over the government’s recent decision to enact a 100 percent levy on the sale of vape liquids.

On July 12th the government of Bahrain announced, with no forewarning, that it will classify vape liquids as a tobacco product.

All tobacco products in Bahrain carry a levy of 100 percent of its retails price.

Currently, there are an estimated 50 retailers in Bahrain who actively sell vape liquids and juices, and these retailers import an estimated 40 000 bottles of liquids into the country each year.

Retailers of vaping products are arguing that the liquids should not be taxed as tobacco products, as the liquids do no...

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Tobacco Taxes Killing NZ Shop Owners

July 24, 2018 Taxation in New Zealand

tobacco taxes in New ZealandWELLINGTON – Cigarettes and tobacco kill smokers, but cigarette taxes have led to the deaths of shopowners.

In a press conference on July 23rd, the acting Prime Minister of New Zealand Winston Peters claimed that the rate of taxation applied to the sale of tobacco and cigarettes is leading to the murder and assault of shop owners in New Zealand.

The government of New Zealand has a long-standing policy of annual increase to the rate of tax applied to cigarettes.

The hikes are intended to drive down the rate of smoking in the country, with the ultimate goal of seeing a “smoke-free” New Zealand by the year 2025.

Over the course of 2018, the number of violent robberies and assaults on small businesses appeared to have escalated, and many commentators suggested that the cause of the esca...

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South Africa Loses Billions in Taxes To Illicit Cigarettes

July 6, 2018 Taxation in South Africa

Illicit cigarettes South AfricaJOHANNESBURG – Cigarette manufacturers in South Africa are fuelling the market for illegal tobacco, where a pack of cigarettes costs less than the tax due on their sale.

According to a new report completed and released by the South African Revenue Service (SARS), the national government is losing billions each year due to the prevalence of illicit cigarette sales. ‘

Approximately three-quarters of all informal shops surveyed across the country appeared to be selling illicit cigarettes.

Currently, a pack of cigarettes in South Africa would carry a minimum tax obligation of SAR 17.85 per pack.

However, the illicit cigarettes were priced lower than the tax, in some cases being as cheap as SAR 5 per pack.

It is impossible that the full tax obligation can be met on the sale of cigarettes that c...

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Don’t Over Tax Vapes, Says NZ Advocacy Group

May 14, 2018 Taxation in New Zealand

tobacco taxationWELLINGTON – As more people stop smoking, the government of New Zealand has to be careful not to discourage cessation through over taxation.

The New Zealand advocacy group, the Taxpayers’ Union, is calling on the government to ensure that it does not resort to taxing tobacco alternatives such as vapes or HEETS.

It has been estimated that the growing popularity of tobacco alternatives in New Zealand will lead to a tax gap of NZD 1.8 billion, as fewer people purchase cigarettes and loose tobacco.

Introducing a tax on vape liquids and similar products could reduce the incentive for smokers to choose healthier options, and “would perpetuate a major cause of financial harm for some of the poorest New Zealanders.”

The Taxpayers’ Union spokesman Louis Houlbrooke said that “some lost tax re...

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