Liquor Taxes Mount, Gasoline Prices Drop

It was Sunday midnight when a new tax regime went into effect. This is where hard liquor may double their prices while gasoline goes down slightly.

This new system for liquor drinks were promulgated since 2010 and meant to go into effect in 2014. This much becomes an advantage to minors who could conveniently afford the liquors; therefore, increasing the revenues of the state.

The regime declares that the stronger the substance present, the higher the liquor tax. It means 75 percent of the retail value with more than NIS 21.28 per liter of alcohol content. In other words, it will charge NIS 105 per liter of alcohol consistently.

This has been a debate for critics and Tax Authority. Critics say if tax would rise, wealthy people would tend to have tax burden while classes below would buy the more expensive ones. Yet, authority speaks that it’s just a way of making the harmful substance less readily available since they are too expensive for many which helps to eliminate the negative externalities.

Reducing gasoline prices by 1.2 percent has been the joy of the public. The price for self-service gasoline fell into NIS 7.43 per liter from the price of NIS 7.52 per liter. While the full-service charge remained stagnant at NIS 0.18 per liter.

The 1.6% drop in the La Vera trade prices for fuels in Mediterranean basin, and the 1.2% appreciation of shekels against dollar during the particular month contributed to the said drop.

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Posted by admin - January 5, 2014 at 1:17 am

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Tobacco Taxes and Bans Keep More than Your Life

Indeed, smoking causes more than 5 million deaths worldwide. One of twenty persons who smoke dies while the rest are suffering from any serious disease. This much is true for most men, who try to engulf in this kind of vice for pleasure, stress relief or enhancing sex appeal.

A study shows that if public smoking were banned in public places, it would have been able to prevent people from these diseases, therefore, extending more their lives.

According to Dr. Douglas Bettcher, it is a win-win situation for finance and health ministries to regenerate revenues to improve health and productivity.

About 40 countries have already taken this preventive measure. One of them is Turkey where the smoking rate has declined from 2008 to 2012. If this progress continues, some of the smoking-related deaths could be turned aside.

Raising taxes to 75 percent of the retail price, warning labels and smoke free air policies are just a few of the programs proven to be effective to stop this world dilemma.

If this would be taken action in all the countries around the globe, it’s possible that poor countries, especially, turn their money into nutrition and education. In result, they would be increasing their economic level and progress then takes over.

Living with good health, meaning, minimizing the use of tobacco, could be one way of saving the country from poverty which gives rise to successful people in all corners of the world.

The question remains for the public if tobacco taxes and bans help preserve humanity, or is this just one trick to make them continue with their vices.

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Posted by admin - January 1, 2014 at 1:17 am

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Additional tax means sub-quality communication

Additional tax levied to the telecommunications industry has a big impact towards the investors as well as the masses.

The telecom sector complained against the government on the five percent (5%) added tax slapped to their services. For nine years, they contribute more than Rs 510 billion to the government, which considers them to be a cash cow.

In India, telecom taxes had gone up to 10.3 percent, Bangladesh 15% and Pakistan 41.5%. This said increase would eventually affect the sector’s expansion plans and therefore compromise the quality of their services.

The tax collection goal of Rs 2.475 billion, if fulfilled, could actually reduce the means of communication. Should taxes go up, the telecom sector would force themselves to increase rates on their services, which may lead to wealthier people to conveniently afford them.

This could otherwise affect sales of mobile phones and mobile applications which may eventually decrease by half. Thus the government unilaterally imposed a sales tax to reduce the budget deficit on 3G auction licenses.

The lower-income sector argued that they have lost their chance to update their communication tools, saying the added tax is more on opposition, especially to the business sector, for not being able to maximize their profit-making.

This short-sighted decision does increase their burdens, they said, and adds to the problems of the telecom sector and hurting the reputation of the PML-N.

Despite all odds, Pakistanis still experience affordable call rates in the entire region. However, the days of affordable communications may seem to be over, and might lead them to get back to traditional means.

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Posted by admin - December 30, 2013 at 1:16 am

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