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The head of Cyprus's new Economic Policy Council has indicated that Cyprus would accept a rise in corporation tax from 10% to 12,5% as part of a bailout deal, as long as it did not rise further for at least a decade.
Christophore Pissarides put forward the proposal to state media as the country continues to negotiate the terms of a bailout from the EU and the International Monetary Fund. He explained that a rise in corporation tax was not important in itself, but that businesses must be confident that it will remain the same for a long time afterwords.
Cyprus applied for a bailout in June 2012, making it the fifth European country to do so, and it is seeking around Eur 17 bn to recapitalize its banks. The country has already implemented a number of tax rises, including a 2% rise in VAT to 17%.
The Economic Policy Council oversees the economy and advises the president on macroeconomic issues. Christophore Pissarides won a Nobel Prize in Economics in 2010. He was appointed as its head by Cyprus's newly-elected president Nicos Anastasiades last month.
Thursday, March 14, 2013
Monday, March 11, 2013
OECD chief: Israel - an example for other members
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President Shimon Peres met OECD Secretary General Jose Angel Gurria in Paris on Friday, and they jointly presented an initiative to establish an international organization comprising multinational companies to address the economic needs of developing countries in the Middle East and elsewhere.
During the meeting, Gurria praised Israel, saying that it had always been an economic and technological leader, and that it was one of the leading OECD member states. "Israel has become an important contributor to the OECD’s work," said Gurria. He said that Israel was an example to other countries in economics, high-tech, and research, and that since becoming a member, Israel had been an asset to the OECD.
Peres declared that key problems in the Middle East were instability, terrorism, and unemployment, and that the new program would provide a response to hunger and lack of jobs in the region. Under the proposal, the OECD will provide international coordination to support multinationals' projects for economic investment, development, the construction of infrastructures, and innovative technologies in countries in the region.
"Israel is an example that the key to prosperity and economic independence doesnot lie in natural resources, but in investment in technology and high tech," said Peres. "Israel will be happy to share its accumulated knowledge in technology, renewable energy, and agriculture, and lead within the OECD international initiatives that will provide technological solutions, communications infrastructures, and health solutions for the Middle East and developing countries."
Thursday, March 7, 2013
Latvia applies to enter Eurozone
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Latvia has formally applied to be part of the euro in 2014, which would mean the 18th incorporation to the bloc. This long awaited move comes after the small Baltic state met the required financial criteria.
Latvia is a victim of the recession due to the financial crisis and they have received an international bailout. The Prime Minister, Valdis Dombrovskis imposed large scale public spending cuts that have contributed to the recovery and as a result Latvia is now one of the fastest-growing economies in the EU.
The European Commission and the ECB will take a decision on Latvia at the end of June.
Latvia has confirmed that it has met the five requirements required to gain entry into the Eurozone, which relate to levels of debt, deficit, inflation, long-term interest rates and having a stable peg to the euro.
Latvia’s currency, the Lat, has been pegged to the euro since 2005 and Mr. Valdis Dombrovskis said that joining is the next natural step. Nevertheless, opinion polls in the country suggest that nearly two-thirds of the population are against joining the single currency.
Chinese banker : Beijing ready for currency war
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One of the most outstanding bankers explained Beijing is ready for a currency war as he urged the world to abide by a consensus reach by the G20 to avoid confrontation, state media reported on Saturday.
One of the most outstanding bankers explained Beijing is ready for a currency war as he urged the world to abide by a consensus reach by the G20 to avoid confrontation, state media reported on Saturday.
Yi Gang, deputy governor of China’s Central Bank, made this statement after G20 finance ministers last month failed drifted to calm fears of an imminent war on the currency markets at the meeting in Moscow.
Those fears have largely been incited by the recent steep turn down in the Japanese Yen, which critics have accused Tokyo of manipulating to give its manufacturers a competitive edge in key export markets over Asian rivals.
Yi Gang explained a currency war could be avoided if major countries examined the G20 consensus that monetary policy should primarily serve as a tool for domestic economy as the Xinhua report described it.
Wednesday, March 6, 2013
No Tax Changes For Belize In 2013-14 Budget
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The Belize Government has announced no new tax measures in its 2013-2014 Budget, but instead anticipates that improvements tax administration will boost tax compliance rates.
The Government has newly implemented the ASYCUDA tax administration system, a computerized customs management system, developed by the United Nations Conference on Trade and Development (UNTCAD), which covers most foreign trade procedures. In particular, the system handles manifests and customs declarations, accounting procedures, transit and suspense procedures. The Belize Government hopes the system will boost customs duty collections and improve authorities' ability to tackle non-compliance with respect to the nation's General Sales Tax (GST) and Business and Income Tax regimes.
As part of a wider of the tax regime-with technical support from the IMF - the Government is to consider bringing the hotel accommodation services sector fully under the General Sales Tax net while at the same time repealing the Hotel Accommodation Tax. The Government is evaluating ways to allow GST credits for the hotel sector in cases where services are in fact business inputs, while mitigating the potential for tax avoidance.
Also,the Belize Government is examining ways to address the structural problems of, and improve the competitiveness in, the cruise service industry, through possible reductions in customs duties on inputs for such services and possible reform of the cascading business tax regime.
Comprehensive tax reform has been deferred until the Belize Government receives feedback on the local tax regime from the IMF (International Monetary Fund).
The Belize Government has announced no new tax measures in its 2013-2014 Budget, but instead anticipates that improvements tax administration will boost tax compliance rates.
The Government has newly implemented the ASYCUDA tax administration system, a computerized customs management system, developed by the United Nations Conference on Trade and Development (UNTCAD), which covers most foreign trade procedures. In particular, the system handles manifests and customs declarations, accounting procedures, transit and suspense procedures. The Belize Government hopes the system will boost customs duty collections and improve authorities' ability to tackle non-compliance with respect to the nation's General Sales Tax (GST) and Business and Income Tax regimes.
As part of a wider of the tax regime-with technical support from the IMF - the Government is to consider bringing the hotel accommodation services sector fully under the General Sales Tax net while at the same time repealing the Hotel Accommodation Tax. The Government is evaluating ways to allow GST credits for the hotel sector in cases where services are in fact business inputs, while mitigating the potential for tax avoidance.
Also,the Belize Government is examining ways to address the structural problems of, and improve the competitiveness in, the cruise service industry, through possible reductions in customs duties on inputs for such services and possible reform of the cascading business tax regime.
Comprehensive tax reform has been deferred until the Belize Government receives feedback on the local tax regime from the IMF (International Monetary Fund).
Tuesday, March 5, 2013
Luxembourg Gives Green Light To Fiscal Compact
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Luxembourg has recently ratified the "fiscal compact", aimed at strengthening fiscal discipline and introducing stricter surveillance within the euro area, especially by establishing a "balanced budget rule."
Luxembourg's Chamber of Deputies adopted the bill approving the Treaty on Stability, Coordination and Governance within the Economic and Monetary Union (EMU) by 46 votes to 10.
In Brussels on March 2 was signed the treaty by 25 European Union member states, with the exception of the Czech Republic and the UK. This treaty is intended to maintain stability in the euro zone as a whole by compelling contracting parties to preserve healthy and sustainable public finances by adhering to specific regulations to prevent excessive deficits.
The main elements of the so-called "fiscal compact" include a requirement for national budgets to be in balance or in surplus, a criterion that would be met if the annual structural government deficit does not exceed 0,5% of gross domestic product at market prices.
Under the terms of the agreement, this balanced budget rule must be incorporated into member states' national legal systems, preferably at constitutional level, within one year after entry into force of the treaty. In the event of deviation from this rule, an automatic correction mechanism will be triggered, defined by each member state on the basis of principles proposed by the European Commission.
The European Union Court of Justice will be able to verify national transposition of the balanced budget rule. Its decision is binding, and can be followed up with a penalty of up to 0,1% of GDP, payable to the European Stability Mechanism in the case of euro area member states.
The signed treaty also strengthens fiscal rules for the euro area by incorporating a commitment on the part of the contracting parties whose currency is the euro, to adopt Council decisions in the framework of the excessive deficit procedure unless opposed by a qualified majority.
The treaty also contains provisions on the coordination and convergence of member states' economic policies and on governance of the euro area. In particular, euro summit meetings will take place at least twice a year.
As of March 1,2013, any granting of financial assistance under the ESM will be conditional on ratification of the treaty and transposition of the balanced budget rule into national legislation "in due time." The provisions of the new treaty are to be incorporated into the legal framework of the EU within five years of the treaty's entry into force.
The fiscal compact will be legally binding as an international agreement and will enter into force following ratification by at least 12 euro area member states. It will only apply to those contracting parties whose currency is the euro, while the others will be bound by its provisions once they adopt the euro, unless they declare their intention to be bound by certain provisions at an earlier date.
Luxembourg has recently ratified the "fiscal compact", aimed at strengthening fiscal discipline and introducing stricter surveillance within the euro area, especially by establishing a "balanced budget rule."
Luxembourg's Chamber of Deputies adopted the bill approving the Treaty on Stability, Coordination and Governance within the Economic and Monetary Union (EMU) by 46 votes to 10.
In Brussels on March 2 was signed the treaty by 25 European Union member states, with the exception of the Czech Republic and the UK. This treaty is intended to maintain stability in the euro zone as a whole by compelling contracting parties to preserve healthy and sustainable public finances by adhering to specific regulations to prevent excessive deficits.
The main elements of the so-called "fiscal compact" include a requirement for national budgets to be in balance or in surplus, a criterion that would be met if the annual structural government deficit does not exceed 0,5% of gross domestic product at market prices.
Under the terms of the agreement, this balanced budget rule must be incorporated into member states' national legal systems, preferably at constitutional level, within one year after entry into force of the treaty. In the event of deviation from this rule, an automatic correction mechanism will be triggered, defined by each member state on the basis of principles proposed by the European Commission.
The European Union Court of Justice will be able to verify national transposition of the balanced budget rule. Its decision is binding, and can be followed up with a penalty of up to 0,1% of GDP, payable to the European Stability Mechanism in the case of euro area member states.
The signed treaty also strengthens fiscal rules for the euro area by incorporating a commitment on the part of the contracting parties whose currency is the euro, to adopt Council decisions in the framework of the excessive deficit procedure unless opposed by a qualified majority.
The treaty also contains provisions on the coordination and convergence of member states' economic policies and on governance of the euro area. In particular, euro summit meetings will take place at least twice a year.
As of March 1,2013, any granting of financial assistance under the ESM will be conditional on ratification of the treaty and transposition of the balanced budget rule into national legislation "in due time." The provisions of the new treaty are to be incorporated into the legal framework of the EU within five years of the treaty's entry into force.
The fiscal compact will be legally binding as an international agreement and will enter into force following ratification by at least 12 euro area member states. It will only apply to those contracting parties whose currency is the euro, while the others will be bound by its provisions once they adopt the euro, unless they declare their intention to be bound by certain provisions at an earlier date.
Friday, March 1, 2013
United Arab Emirates Upgrades Online Tax Payment System
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The United Arab Emirates Ministry of Finance has announced a new electronic reporting system to further modernize revenue collection from taxpayers.
A second version of the e-Dirham system was launched on February 27, 2013, to replace its "first generation" predecessor. The system will further streamline government services in the area of revenue collection and the payment of fees via the Internet. The United Arab Emirates Government said the new system would encourage the use of virtual money transfers to reduce security risks, encourage prompt payment and cut administrative costs.
Undersecretary of the Ministry of Finance, Younis Haji Al Khouri said: "The Ministry continuously seeks to remain ahead of the latest technological advancements with regards to the management of the financial resources. The G2 e-Dirham is considered a quick and safe method to collect revenues, and government service fees for federal and local entities."
" Since that launch of the first generation of e-Dirham system, the Ministry has been committed to further developing and modernizing the system, and expanding its use in government authorities and non-governmental organizations."
The United Arab Emirates Ministry of Finance has announced a new electronic reporting system to further modernize revenue collection from taxpayers.
A second version of the e-Dirham system was launched on February 27, 2013, to replace its "first generation" predecessor. The system will further streamline government services in the area of revenue collection and the payment of fees via the Internet. The United Arab Emirates Government said the new system would encourage the use of virtual money transfers to reduce security risks, encourage prompt payment and cut administrative costs.
Undersecretary of the Ministry of Finance, Younis Haji Al Khouri said: "The Ministry continuously seeks to remain ahead of the latest technological advancements with regards to the management of the financial resources. The G2 e-Dirham is considered a quick and safe method to collect revenues, and government service fees for federal and local entities."
" Since that launch of the first generation of e-Dirham system, the Ministry has been committed to further developing and modernizing the system, and expanding its use in government authorities and non-governmental organizations."
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