Tag: tax

  • U.K.: Levies for Vapes to be Unveiled in March

    U.K.: Levies for Vapes to be Unveiled in March

    Credit: TR Archive

    A new tax will hit vapers in the United Kingdom despite warnings it will punish people who have switched to e-cigarettes after quitting smoking.

    The plans for the levy, which will likely increase the cost of vaping liquid by at least a quarter, will be unveiled in the Budget in March.

    A government source told The Mirror it was now almost inevitable that a tax on vaping will be introduced as part of the Spring Budget, which Chancellor Jeremy Hunt will announce on March 6.

    Ministers are looking to copy European countries such as Germany and Italy that already have levies on vapes.

    A 10ml bottle of e-liquid, which a typical vaper would get through in a week, costs around £4 at present. In Germany, a £1.40 vape tax is slapped on 10ml bottles, with plans to double this to £2.80 in 2026.

    Italy, which in 2014 became the first country to tax e-cigarette fluid, charges a £1.10 levy on 10ml bottles.

  • ‘Positive’ tax

    ‘Positive’ tax

    India’s new goods and services tax (GST) is a positive for cigarette companies, according to Sanjay Manyal, equity research analyst at ICICI Securities.

    “Prices should go down by at least 5-7 percent or maybe even more, which probably will benefit the companies and would really help in aiding growth at least for FY18,” he told India’s Economic Times.

    Manyal said cigarette consumption is not completely price inelastic as excise tax hikes almost every year have led to volumes declining by double digits.

    If there is a price decline, he added, there will be some boost. Manyal said he expects market leader ITC to benefit most.

  • Philippines to audit Mighty Corp.

    The Philippine Bureau of Internal Revenue (BIR) has started an audit on the tax payments of cigarette manufacturer Mighty Corp., reports ABS-CBN News.

    BIR personnel have been assigned to Mighty’s manufacturing facilities to ensure they are complying with tax payments.

    The investigation follows allegations that the company has been underdeclaring its production volume, resulting in billions of pesos in foregone revenues for the government.

    Mighty produces the Mighty Menthol and Mighty Filter brands. In February, it defended its pricing as a “marketing” strategy and noted that the company pays no royalties to foreign parents, giving it a cost advantage.