tobacco taxation tagged posts

WHO Calls for Hike on Cigarette Taxes

January 13, 2017 International Tax Cooperation

Cigarette taxes should be hikedGENEVA – More than 66 million smokers worldwide would drop the habbit, if excise taxes on cigarettes were bumped up slightly.

Minor increases in the taxes levied on the sale of cigarettes worldwide could raise billions in extra tax revenues, while also saving millions of lives, according to the results of a new study released jointly by the World Health Organization and the U.S. National Cancer Institute.

It was estimated in the report that smoking results in approximately 6 million death each year, and carries a global financial burden equivalent to USD 1 trillion in healthcare costs and lost productivity.

It is estimated that global excise taxes on tobacco generated USD 269 billion between 2013 and 2014, and less than USD 1 billion of the collected total was diverted to tobacco preventi...

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8 Million Smokers Quit After Tax Hike in Philippines

December 5, 2016 Taxation in Philippines

Taxes on Cigarettes in PhilippinesMANILA – Tax hikes on cigarettes have forced my Filipinos to quit, but it now seems manufacturers may be trying to flood the market before another round of tax hikes hits.

In a recent interview the president of the Philippine Society of General Internal Medicine Antonio Miguel Dans reportedly claimed that as many as 8 million locals have quit smoking due to the effect of tax hikes on the sale of tobacco.

The latest round of tax hikes on the sale of tobacco occurred in 2012, and were aimed specifically at reducing consumption of tobacco in the country.

In 2012 the estimated smoking rate in the country was approximately 31 percent, while it has now dropped to 23 percent, a drop equivalent to approximately 8 million people.

The supply of cigarettes in the Philippines between 2012 and 2015 ...

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Black market in the UK Worth GBP32 Billion

November 15, 2016 Taxation in UK

Cigarette smugglingLONDON – Smuggled cigarettes, beer and, diesel could be the reason that UK taxpayers are not being granted tax breaks.

The results of new research released by the UK based Taxpayers Alliance on November 14th shows that the UK government could cut the basic rate of income tax by 1.5 percent, if it could reign in black market activity.

It is estimated that between the 2010-11 financial year and the 2014-15 financial year, the government lost out on tax revenues of as much as GBP 31.6 billion through black market sales of tobacco, alcohol, and diesel.

The largest portion of the losses was due to black market sales of cigarettes, followed by beer, hand rolling tobacco, diesel, spirits, and wine.

Even if the estimates for the impact of the smuggling are overstated, the lower limit estimates w...

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Tobacco Taxes to Rise by 40 Percent in New Zealand

May 27, 2016 Taxation in New Zealand

Sin TaxWELLINGTON – New Zealand is aiming to eradicate smoking in the country by implementing a series of annual tax hikes.

In its budget plan released on May 26th the government of New Zealand announced that it will reinstate a new round of annual tax hikes on cigarettes and tobacco products.

From January 1st 2017 the rate of taxation on the sale of tobacco products will rise by 10 percentage points, with equal hikes set to take place on January 1st each year until 2020.

The extra tax collections will yield an extra NZD 425 million in tax revenues each year.

The new tax hikes are a continuation of a series of 10 percent increases which were enacted each year between 2012 and 2016.

It is currently estimated that approximately 15 percent of people in New Zealand are smokers, although the rate ...

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Collection of Sin Tax Begins to Fall in Philippines

May 12, 2016 Taxation in Philippines

MANILA – Graphic health warnings on cigarettes packets in the Philippines have helped the reverse continued growth in the collection sin taxes.

New data released by the Bureau of Internal Revenue (BIR) of the Philippines on May 11th indicates that collection of taxes from the sale of alcohol and tobacco has increased over the course of this year, but the recent implementation of warning labels on cigarettes may put an end to the increases.

The collection of the “sin taxes” on the sale of tobacco and alcohol over the month of January to March rose by 22.78 percent, compared to the same period over the course of 2015.

The tax collections totalled PHP 26.62 billion, exceeding the goal of PHP 24.73 billion set for the period by the government.

However, despite the overall rise over the f...

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