consumption tax tagged posts
April 11, 2016 New Zealand Taxation
The drug trade in New Zealand could net NZD 245.4 million in taxes per year, if it was taxed like any other business.
Last week the Ministry of Health issued its annual Drug Harm Index, claiming that the nation’s illicit drug trade reduces the tax base by approximately NZD 245.4 million.
It was estimated by the Ministry of Health that the untaxed illicit drug trafficking in New Zealand could have led to a collection of NZD 78.3 million of GST, and an additional NZD 167.1 million in corporate income tax.
The sale of drugs to dependant users would have netted an estimated NZD 140 million of tax, while causal users would have led to an additional NZD 105.4 million of tax obligations.
Cannabis and other cannabinoids would have resulted in taxes of NZD 214...Read More
April 4, 2016 New Zealand Taxation
Health experts in New Zealand are calling on the government to take a hard stance on sugary drinks and implment a new 20 percent sales tax on such beverages.
Over the weekend a joint letter was presented to the Cabinet Ministers of New Zealand with a call to instate a tax of 20 percent on the sale of sugar-filled beverages.
The letter, which was co-signed by 74 separate health experts, claimed that New Zealand currently has the fourth highest childhood obesity rate in the world.
The health experts conceded that the government has prioritized the issue of childhood obesity in the country, but added that the lack of funding provided to fight the problem will result in a lack of results.
It was claimed that if a tax of 20 percent was levied on the sale of sugary drinks, the government could...Read More
November 25, 2015 New Zealand Taxation
Evidence prepared earlier this shows that taxes on sugary drinks would have an impact on obesity rates in New Zealand, especially among low-income earners.
On November 19th the Treasury released a report on the potential feasibility of implementing several measures aimed at tackling the country’s growing obesity problem.
The tax measures examined in the report include a sugar tax, a fat tax, and the removal of GST on fresh fruits and vegetables.
The Treasury found that academic evidence shows that a tax on the sale of sugar laden beverages will lead to a reduction in the rate of obesity in the country.
It was noted that those opposing the tax have claimed that the tax will exert a disproportionately heavy effect on low-income earners, but it was also noted that low-income earners experi...Read More
October 19, 2015 New Zealand Taxation
The government will rely on education programmes and exercise instead of taxing people in order to help fight obesity.
Early on October 18th the Prime Minister of New Zealand John Key claimed that the government would not be implementing a tax on the sale of sugary drinks.
The Prime Minister said that obesity has now overtaken smoking as the leading health concerns in the country.
However, while he also acknowledged that sugar has been proven to have links to obesity, but he also added that “…the problem with sugar tax is: So you put a sugar tax on fizzy drinks fair enough, OK. But what about everything else sugar is in?”
The government is expected to release its anti-obesity plan soon, which will detail the steps the government will take in its effort help reduce waistlines across the...Read More