WHO’s programs not only improve overall health – taxes too
Smoking-related diseases claim at least 6 million lives annually and the numbers are projected to increase another 33% in less than 20 years. With this, the World Health Organization (WHO) spearheaded the Framework Convention on Tobacco Control in 2005 which aims to prevent premature deaths all over the world caused by smoking.
The program is designed to curb and minimize tobacco use, through raising taxes to 75% of the retail price, limiting smoking areas on public places, printing of warnings on cigarette packages, and banning of promotions and advertisements that encourage the act of smoking.
Of these methods, increasing taxes on cigarettes may prove to be more effective in lowering smoking-related deaths, based from an independent study conducted by the WHO.
According to this study, limiting designated public smoking areas could potentially prevent 2.5 million smoking-related deaths, while increasing taxes could prevent another 3.5 million fatalities.
Since its implementation in 2005, the said program has saved many lives in over 40 countries worldwide. In addition, higher taxes paid to purchase a pack of cigars can be redirected by the government to improve health and education systems.
Apart from impacting mortality rates and government taxes, the program, if effective, could eventually result to more affordable health care cost and healthier babies that do not suffer from the harmful monoxides from the outside environment.
According to Dr. Douglas Bettcher, from WHO’s non-communicable diseases department, “it is a win-win situation for health and finance ministries to generate revenues that have a major impact on improving health and productivity.”
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Higher taxes for the new fiscal year
July 1st marks the start of a new fiscal year for most states in America, and a couple of changes related to taxes and penalties have been implemented.
Monona, Wisconsin
A law has been implemented which focuses solely on bullies and their parents. The act of bullying ranges from schoolyard fights to cyber bullying. Offenders will have to pay $114 on the first offense, and $177 for any succeeding offenses. This law encompasses kids aged 12 and over; in some extreme cases, parents of kids less than age 18 may also be fined for their child’s behaviour. The fines, referred to as “bullying taxes” are just one of the many that are expected to be implemented in the state.
Florida
Slower drivers on the fast lane need to watch their rear views more often to ensure they are not stalling cars behind them. Florida’s “road rage” law makes it illegal for cars to drive more than 10 miles below the speed limit if another car is trailing them.
According to Lt. Jeff Frost of Florida Highway Patrol, a violation of this kind will appear the same way as a speeding ticket – and in effect could lead to a higher insurance bill and taxes.
On the other states, shopping also takes a hit. In Arkansas, consumers will be slapped an additional 0.5% in sales taxes, bringing the state’s taxes to 6.5%. For a $600 gadget, this means an additional $3 on the bill. Furthermore, online shopping also takes a hit. In Minnesota, consumers will now be charged higher sales taxes on online purchases. A $9.99 game will cost an additional 69 cents on sales taxes.
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Apple – “Think” Taxes
Tech giant Apple is on the hot seat again for apparently paying nothing for corporation taxes for its UK subsidiaries in 2012.
According to the corporate results filed by the company, its two subsidiaries made pre-tax profits of around 60 million pounds, and sales of over 1 billion pounds combined. So why the company pay zero in taxes?
According to Forbes, there are three things to consider before allegations are made against the company.
First, iTunes sales are made in Luxembourg as VAT rates are lower. Furthermore, the EU tax law itself states that “electronic services” pay taxes in the country they come from and not the country where the service is delivered. For physical services or items, the rate will follow the place of delivery. So in the case of iTunes’ digital downloads, all the taxes will be settled in Luxembourg even if the recipient is in the UK.
Second, Apple being a global company, has its business structured strategically. Apple purchases its materials from China via an Irish company which will then sell the products to different dealers and Apple stores all over the world. The profits earned by the Irish company will are taxed in Ireland – although in Ireland, taxes only need to be paid if the transaction took place within the country – so no taxes need to be paid.
Finally, operating profits are not subject to taxes in the UK. What are taxed are the profits before tax. What the company does is that it issues stocks to the management as part of their pay. Expenses due to employee pay are deducted from pre-tax profits, and only then will they be only to calculate the taxes due.
While there is nothing illegal about what Apple is doing as far as its taxes as concerned, it all seems dodgy and a little discomforting for some. After all – Apple’s signature is to “Think” – and so there is actually no surprise to the company’s creativity in managing its finances.
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