tobacco taxation tagged posts

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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Taxes Discourage Smokers from Switching to E-Cigarettes

March 23, 2016 Taxation in USA

WASHINGTON D.C. – Poorly planned tax measures may prevent smokers in the USA from dropping the habit in favor of less harmful e-cigarettes.

On March 22nd the US think-tank the Tax Foundation released a new report on the taxation of electronic cigarettes in the USA, calling for state governments to ensure that they do not tax the new vaporizer technologies in the same way that they would tax traditional tobacco products.

In its report the Tax Foundation noted that vapor products have been shown to be less harmful to humans than traditional cigarettes, and called on tax authorities to ensure that new tax measures do not inadvertently discourage current smokers from switching to this less damaging alternative.

Currently only four states in the USA charge a separate tax on the sale and suppl...

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UK Recovers GBP 1.6 Billion From Smugglers

March 22, 2016 Taxation in UK

Sin TaxLONDON – The rapidly growing tax burdens on alcohol and tobacco are fuelling mass smuggling in the UK, although efforts by tax authorities are helping to bring a significant portion of the contraband back into the tax net.

Investigations into smuggling of tobacco and cigarettes in the UK in 2015 led to the recovery of GBP 1.63 billion in taxes, according to the results of new research completed by the UK accounting firm UHY Hacker Young.

The amount of taxes collected from uncovered smuggling operations in 2015 is 6 percent higher than in the previous year.

The increase in collections has been partially attributed to the fact that while the tax and duties on alcohol and cigarettes is raised at a higher rate than inflation, the production costs on such products is much slower, leading to ...

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Taxes Will Double the Price of E-Cigarettes in the EU

March 3, 2016 Taxation in EU

BRUSSELS – Tax changes could soon double the price of e-cigarettes sold in the EU, although claims are arising that the change is aimed more at raising revenues rather than improving health.

Controversy is rising over the potential implications of a new proposal being prepared by the European Commission on the taxation of e-cigarettes in the EU, which, if approved, could see the price of such devices rise significantly.

Currently tobacco products sold in the EU are required to be taxed at a rate of at least 57 percent, prior to any other regional VAT being applied, but e-cigarettes do not fall under the scope of the tobacco tax, facing only the VAT rates.

The European Commission is now looking at tax measures which could bring the taxation of e-cigarettes in line with cigarettes and oth...

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New Zealand Hikes Cigarette Taxes

January 4, 2016 Taxation in New Zealand

WELLINGTON – Days after the government of New Zealand hiked the taxes on cigarettes claims have come forward that the rise is nothing but a revenue gathering mechanism.

On January 1st the excise taxes on the sale of cigarettes and tobacco in New Zealand were raised by 10 percent.

The latest tax hike is the fourth annual rise implemented by the government as part of a new regulation enacted in 2014.

Following the hike, the average price of a 20 pack of cigarettes is now well over NZD 20, and it is estimated that the habit costs the average smoker in excess of NZD 7 000 per year.

In previous years the annual tax hikes have led to a surge in use of free public smoking cessation services, with the national Quitline program reporting a 1 685 jump in the number of sign ups within the first wee...

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