Luxury Tax Research Articles

Luxury Tax and Wealth Tax – Between Transparency and Sustainability of the Tax System

Luxury Tax and Wealth Tax – Between Transparency and Sustainability of the Tax System

Luxury tax perspectives: The evidence of the Republic of Belarus

The study is dedicated to the reasons for luxury tax implementation into the national taxation system. The purpose of the research is to study the emergence and experience of applying the luxury tax in various countries in order to determine the feasibility of introducing such a tax in the Republic of Belarus. Authors’ conclusions and findings have been presented against the background of the analysis of digitized texts on tax and bibliometric and scientometric analysis of the scientific field of taxation. As a testing ground for making our conclusions in terms of lessons learned from past historical experience and real economic background, the Republic of Belarus was chosen. Possible reasons for the introduction of such a tax were considered, as well as an analysis of the market for luxury goods in the Republic of Belarus and the demand for them was conducted. We have drawn some parallels between the Republic of Belarus and the Russian Federation to reach a reasonable conclusion. For this purpose, the Russian luxury goods market (premium car and real estate markets) was analyzed based on available statistics for the years 2020-2022. As the most politically controversial tax that can be not as efficient as income taxes and have unintended consequences, luxury tax was examined from the point of international experience and historical perspective. Examples of luxury goods throughout history and in real life together with historical references to the implementation of this tax were presented. The effectiveness of luxury tax and its impact that depends on a variety of factors (tax rate, types of goods and services being taxed, economic conditions, etc.) together with the modern concept of luxury tax with national specific was evaluated. Considering the situation in the Republic of Belarus, although during recent years there has been a budget deficit and there is a necessity to find new sources of state income, we didn’t find any reasons for the implementation of such a tax into the national taxation system. These types of taxes are mainly imposed in highly developed countries where people can afford “luxurious” goods and the variety of these goods is higher. In the case of the Republic of Belarus, there is a trend of decreasing the number of people whose purchasing power would allow them to buy luxury goods and the real disposable income of Belarusians has also declined, making it less likely that Belarusians will spend money on the consumption of luxury goods.

Wealth inequality and intergenerational mobility in Russia: possibilities of tax regulation

The economic inequality of people in Russia today is high. The decline in intergenerational mobility is determined by increasing concentration of capital. The purpose of the study is to examine the capabilities of taxes in smoothing the wealth inequality of Russians and strengthening the intergenerational mobility in the framework of assessing their relationship on the basis of the World Bank database. According to the results of the analysis, there was a decrease in the mobility between generations in Russia and emergence of the problem of consolidating the economic situation within family, which, if the present trends continue, will be intensifying. For generations born in the 1970s and 1980s, there was recorded a sharp increase in the relative indicator of immobility — the correlation coefficient between the duration of education of children and their parents, from 0.32 to 0.48. There is observed a decrease in the absolute indicators of mobility between generations — a decrease in the share of children who got a longer or higher education than their parents. The Great Gatsby Curve has been transformed in the coordinates of the concentration coefficient of net personal wealth and relative intergenerational mobility in education. Russia’s position on the Great Gatsby Curve indicates aggravation of two related problems — consolidation of inequality and reduction of mobility between generations. To level the economic inequality in Russia, it is necessary to increase vertical mobility between generations. One of the traditional and effective ways of the state regulation of the polarization of personal assets and property of citizens is tax regulation. Today in Russia, property taxes do not help to smooth out the inequality. Personal income tax on donations and property taxes of citizens make in total about 1% of the tax revenues of the consolidated budget. Concentration of wealth in 10% of the most affluent Russians exceeded 74% in 2021. Progressive taxation of personal property, increased rates for owners of many real estate objects, ««luxury tax», inheritance and gift tax, as well as capital taxation have prospects from the standpoint of smoothing wealth inequality and activating intergenerational mobility in Russia.

GST: An Analysis Of The Collection And Contribution Of GST In FY 2022-23

Tax revenue is the major source of revenue for the Indian Government. The entire tax system is segregated into direct and indirect taxes. Both have their popularity in the country’s economy. Indirect tax is also called GST. GST stands for 'Goods and Service Tax'. About 175 countries have implemented GST and France was the first country to introduce the concept of GST in 1854 in the world. In India on 1st July 2017 the new concept of indirect tax i.e. GST was implemented. It is a single-livery indirect tax enforced in place of various types of indirect taxes that were imposed by central and state governments before GST such as VAT, excise duty, service tax, luxury tax, purchase tax, etc. Under GST the identical rate of tax applies to particular goods and services throughout the nation that is why it is also called ‘ One Nation, One Tax”. The responsible government either central or state imposes the GST on the supply of goods and services that take place in the country as well as outside the country (import and export). The main aims of the government behind the implementation of the GST were to bring the livery tax system, forbid the progression of black money, and simplify the Indian tax system. Goods and Service Tax has been making its contribution to the Indian economy every year since 2017. The present study sheds light on the collection of GST in FY 2022-23 and evaluates the contributions made by different constituents of businesses to GST. And also discussed the different components and objectives of Goods and Service Tax.

A Case Study on GST and Development of India in Modern Era IOT Based Smart Power Grid Control and Energy Monitoring

Goods and Service Tax which is also known as GST is an indirect tax which has been the biggest tax reform in the era of the Indian Indirect Taxation history also goes on to absorb various other taxes like VAT , CST , Service Tax , Excise Duty , Luxury Tax , Entertainment Tax , etc . In this study we will study the benefits , challenges and impact of introduction of GST on the development of Indian Economy in the modern era. This study has been exploratory , casual and empirical in nature and the data needed for such research work has been collected through both direct and indirect methods of collection of primary and secondary data.

A Case Study on GST and Development of India in Modern Era

Goods and Service Tax which is also known as GST is an indirect tax which has been the biggest tax reform in the era of the Indian Indirect Taxation history also goes on to absorb various other taxes like VAT , CST , Service Tax , Excise Duty , Luxury Tax , Entertainment Tax , etc . In this study we will study the benefits , challenges and impact of introduction of GST on the development of Indian Economy in the modern era. This study has been exploratory , casual and empirical in nature and the data needed for such research work has been collected through both direct and indirect methods of collection of primary and secondary data

Has the Luxury Tax Improved Competitive Balance in the NBA?

Has the Luxury Tax Improved Competitive Balance in the NBA?

From climate science to climate action

Abstract Non-technical summary Despite 50 years of good science showing the urgency for action on remedying climate change, the business and political worlds have been exceedingly slow in actualizing climate solutions. Now excess climate-related deaths have mounted to more than 5 million people per year. In this Intelligence Briefing, we identify a few targeted driving actions through economic taxation, ending subsidies, and pursuit of legal cases for climate homicide, among many others. Scientists can play a vital role in providing supporting scientific evidence for policies and prosecutions, and model climate behaviors in their personal and professional lives. Technical summary Based on our analysis of the current global situation regarding carbon (CO2) in the atmosphere, we note that the earth has reached a dangerous 420 ppm, compared to staying under the 350 ppm necessary for human sustainability; and carbon concentration in the atmosphere is still climbing, as fossil fuel firms are continuing to delay and dilute regulatory efforts. This paper suggests action on several fronts. Governments can impose improved taxation regimes that involve unitary, windfall, and luxury taxes on carbon and the consumption of natural assets. Cutting subsidies to fossil fuel firms via COP actions can reduce carbon, by making renewable energy more competitive. We suggest recognizing the excess deaths by carbon pollution as homicide and charging responsible companies as was done in the case of asbestos and tobacco. If timely action is not taken, we caution about the potential rise of climate violence of emerging ‘new politics’ and increased global population displacement. Science, government, and business sectors need to collaborate in transdisciplinary ways to produce further actionable knowledge. Scientists can lead by example by reducing their own carbon footprints. Social media summary Fund climate action by taxing billionaires, eliminating subsidies, and suing fossil companies for climate homicide. The science community is focused on and committed to systems changes – seeking both natural systems, and social and economic systems to be sustainable. Yet systems that are in-place now producing carbon dioxide (herein aka carbon), are not taking adequate scientifically recommended actions; or worse, they are changing in the wrong directions. How can we move from producing more scientific knowledge to science-based actions, and what can scientists do to support such actions? In this Intelligence Briefing, we suggest some pathways for action.

Is luxury tax justifiable?

AbstractThis paper examines whether, and if so when, luxury tax is justifiable. After a characterization of luxury tax, I critically examine several arguments that have been or can be made in defence of luxury tax, including Ng’s diamond good argument and a variation of Frank’s positional good argument. I put forward an alternative, expressive argument, according to which luxury tax can help to create and sustain social norms that discourage conspicuous luxury consumption and display of wealth. I explain several ways in which luxury tax fails to achieve the expressive goal and brings about unintended consequences.

Luxury tax and price changes: evidence from the Taiwan housing market

Luxury tax and price changes: evidence from the Taiwan housing market

GST and its Influence on Hospitality

A comprehensive, multi-stage, destination-based tax on goods and services called the "Goods and Services Tax" will be imposed on every value addition. GST is recovered from the final consumer. All sorts of Indirect taxes like Excise duty, Service Tax, Octroi, Entry Tax, Entertainment Tax, Luxury Tax are merged under GST except a few taxes such as Basic customs duty, anti-dumping duty, safeguard duty, property tax, stamp duty and so on. The GST system went into effect in India on July 1st, 2017, with the slogan "one nation, one tax." and which will see its effects on different economic sectors. GST will have an impact on all industries, including the hospitality sector. It uses a dual structure concept to prevent cascade consequences. The GST is going to affect the suppliers and service providers as well as the consumers of the Restaurant Industry. In the earlier tax system Hotel industry was attracting the taxes such as VAT, Service Tax, Luxury tax, CST, Central excise etc.. But all these taxes are subsumed in to a singe tax under GST. Therefore there is a necessity to study the impact of GST on Hotel industry as well as on the consumers of this industry. This paper highlights the changes reflected in the hotel and restaurant industry due to transformation of old VAT and other tax systems in to the new GST system. The study is conducted in Dharwad District of Karnataka state. As this coastal district is the famous tourist and commercial Centre, more restaurants and hotels are emerging in this area.

The league system, competitive balance, and the future of European football

ABSTRACT Research question Which combination of league system and competitive balance in European men’s club football maximises welfare, and which policies can improve the combination? Research methods Qualitative analysis is applied that uses the sport economics literature and other sources. An encompassing number of factors, insights and empirical results are considered to analyse systematically the options to reform European professional football. Results and findings In the present league system, competitive balance is decreasing which reduces welfare. In a system with a Super League, competitive balance can be higher. The last system also has other advantages, as well as disadvantages, in relation to issues such as the quality of play, the role of star players, chances to lift important trophies, regional and national sentiments and rivalries, and sporting meritocracy. After discussing these issues, it is concluded that a Super League system may improve future welfare. If, however, the present system regains a higher level of competitive balance, it may well generate a higher welfare level than a Super League. Two measures for improving competitive balance are a more equal distribution of broadcasting revenues and a progressive luxury tax. Practical implications At present, the measures above may seem to be infeasible. However, this can change if the competition authorities accept our interpretation of EU competition law and act accordingly. More generally, the government should become better aware of its potential to improve welfare in the football sector. Research contribution The paper provides a systematic analysis of the welfare effects of different options to reform Europe’s professional men football. Because of its broad approach it sheds new light on pressing issues and it provides insights for policymaking.

TRANSFORMATION OF PROPERTY TAXATION AS TOOL TO REDUCE THE MONETARY INEQUALITY OF CITIREUS

Monetary inequality is one of the most pressing socio-economic problems for Russia. Taxes have so far failed to reduce inequality. Not only income taxation of citizens, but also property taxation has the potential to smooth it out.
 In Russia, the share of property taxes of individuals in the tax revenues of the budget is significantly lower than in many developed countries. It is shown that property taxes of individuals have a serious potential both in increasing the budget security of regions and municipalities, and in smoothing inequality.
 In Russia, the tools for smoothing inequality among property taxes include benefits for certain categories of citizens; transport tax on expensive cars («luxury tax»); reduction of the tax base for the property tax of individuals by the cadastral value of 20 sq. m. for apartments and 50 sq. m. for residential buildings. Taking into account foreign experience, it is proved that the introduction of inheritance and gift taxes, as well as an increase in property tax rates for owners of many real estate objects, can be significant within the framework of smoothing monetary inequality.

GROWTH OF REVENUE OF GOODS AND SERVICES TAX IN INDIA

Government of India has implemented Goods & Services Tax (GST) in India on 1 July, 2017. The obective of this research paper is to explain the mechanism of GST and its effects on Indian economy. The Kelkar Committee was convinced that a dual GST system shall be able to tax almost all the goods and services and the Indian economy shall be able to have wider market of tax base, improve revenue collection through levying and collection of indirect tax and more pragmatic approach of efficient resource allocation. Under the Goods and Service Tax mechanism, every person is be liable to pay tax on output and shall be entitled to enjoy credit on input tax paid and tax shall be only on the amount of value added. The historic GST or goods and services tax has become a reality. GST is going to consolidate these multiple taxes into one as ‘One Nation, One Market, and One Tax’. Integration of goods and services tax would definitely lead to ease of doing business and simplifies tax compliance. GST bill will be a form for economic integration of India. Government of India, this surplus revenue may contribute to the growth of economy by way of investment in various infrastructural & development projects by Government of India. GST may have positive impact on economy, four tier structure of tax rate under GST may result into massive price hike of luxurious Goods & Services as well Government has taken efforts to put Goods & Services of necessity under lowest slab of tax rate. This is the major indirect tax reform in the history of India, outcome of which various Central & State taxes subsumed under GST viz. Central Excise Duty, Service Tax, Additional Duty of Excise, Surcharges, Cess, Countervailing Duty, Special Additional Duty, Sales Tax, VAT, Purchase Tax, Luxury Tax, Entry Tax etc. KEYWORDS:-Economy, GST, Negative Impact, Positive Impact, Transparency.

Тенденції формування доходів Державного бюджету України.

In the conditions of acceleration of rates of economic growth the question of formation of the State budget of the country acquires special urgency. The purpose of the article is to analyze the main trends in budget revenues in Ukraine, the study of the proportion of taxes in the overall structure of the revenue side. The purpose of the study led to the formation of the following tasks: study of the main items of the State budget revenues of Ukraine, their comparative analysis and proposals for increasing the revenue base of the State taking into account social inequality and peculiarities of mentality. In the course of the analysis such methods of scientific cognition as analysis, comparison, statistical, graphic were used. In the course of the research it was determined that the following types of revenues occupy the largest share in the country's revenues: value added tax, corporate income tax, excise tax. Value added tax has the greatest fiscal potential, as the tax base is concentrated within the consumer needs of individuals and legal entities. The process of consumption is continuous, which is why value added tax can be considered a stable source of budget revenues. However, the high share of taxes in the overall revenue structure is not able to provide the current expenditures of the country, so there is a need to expand sources of funding. The authors proposed a number of measures aimed at increasing the State budget revenues: transition to long-term budget planning, expanding the tax base by introducing luxury taxes, introducing rational property taxation, transition from proportional to progressive personal income taxation system. At this, the authors emphasize the gradual introduction of tax changes, as an instantaneous change of direction can lead to an increase in the level of the shadow economy. Such measures will increase budget revenues and minimize the need for credit resources (public lending).

Are Women Human? Tampon Taxes and the Semiotics of Exclusion


 
 
 By now, there is a robust body of scholarship critiquing the taxation of menstrual products from material, expressive, constitutional, and human rights perspectives. This literature highlights the issue of access to sanitary products in prisons, in secondary schools, and in poor countries. Invoking the expressive function of law, scholars have noted how the tax signals to women that their basic physical and health needs are not human necessities that merit tax exemption—like say Viagra—but are rather luxuries that should be taxed—like cigarettes and alcohol. In this tax regime, human needs considered basic enough to merit tax relief—thinning hair, for example—are male needs. So what else is new? As Catherine Mackinnon asked, ironically, decades ago: Are women human?
 
 
 
 In this Article, I want to turn the expressive critique of tampon taxation in the direction of semiotics. Culture constitutes systems of signs through which we understand our world. These signs convey meaning though their difference from other signs, not through any intrinsic meaning. Tax law has its own signs. By imposing differing tax regimes on people and things, it tells us how to read them. For example, through differing taxation, it tells us what a family is (one organized around a formal marriage) and is not (networks of dependence organized around cohabitants), what work is (labor exchanged for goods) and is not (housework), etc. Taxes also tell us which goods are luxuries and which are necessities by imposing a luxury tax on certain items and exempting others.
 
 
 
 
 

Is Dividend Distribution Tax a Tax on Income of Shareholder? The Debate Continues

An inquiry into the innate nature of a tax presupposes examination of an intricate web of variables, which on most occasions results into raging debates. For examples, whether a tax on service provider is a tax on service or a professional tax, whether a tax on capital value of assets is same as wealth tax, whether a tax on tobacco is luxury tax, nature of expenditure tax, etc. are some intriguing controversies into the true nature of various taxes which have received exposition of the Supreme Court. In such cases, the complexities often issues when the characteristics of the tax legislation depart from the ordinarily understood dimensions of a particular tax. The immediate case at hand is of ‘tax on distributed dividend’, or Dividend Distribution Tax (‘DDT’), as it is popularly called which is imposed under a separate Chapter of the Income Tax Act, 1961 (‘ITA’). This tax was introduced in 2000, omitted and reintroduced after a brief hiatus. DDT has since then been in vogue upto March 2020 when its levy was discontinued. Its contours have been examined twice by the Supreme Court, yet the debate on its true nature continues. The exact issue for consideration is whether DDT is a tax on income of the shareholder, which has resulted into extensive debates, particularly in the context of international tax. The inquiry arises from the challenges by taxpayers to the official view of the Government that DDT is not a tax on the income of the shareholder. According to the shareholders, particularly those who are Non-Residents and entitled to invoke Double Taxation Avoidance Agreements (DTAA), DDT is nothing but a tax on income of shareholder and therefore the levy of DDT should also observe the limitations under the DTAA on any tax on dividend in India. The debate is ongoing and has received mixed response. Currently, the issue awaits consideration of the Income Tax Appellate Tribunal. This article seeks to demystify the cause of controversy and the run-up to the present status.

The applying functions of tax regulation for state development

AbstractTaxes are a complicated and influential category affecting all the economic phenomena and financial processes. To ensure a stable flow of funds to the state and local budgets, all the participants of the tax legal relations should properly perform their obligations before the state and observe the applicable legislation. The aim of the paper is to make an analysis of the positive experience of European countries in the field of taxation and their possible application in developing countries. The considered practice in the part of the luxury tax showed that almost all the developed foreign countries introduced this kind of tax, however, in some of them, it has not been established for some reasons. The experience of the majority of countries shows that social contributions are paid in the majority of cases both by the employer and the employee in a compound and in some cases – by the employee and the employer separately. In the sphere of taxation of transport, the authors suppose that the experience of the foreign states is rather progressive and has a number of positive peculiarities.

Period Poverty and the Menstrual Product Tax in the United States [29F

INTRODUCTION: Period poverty refers to the lack of access to menstrual products. The “luxury tax” collected on menstrual products in the majority of the United States is a major contributor to period poverty and a barrier to reproductive health for the estimated 16.9 million women living in poverty in the U.S. In this study, we sought to determine the financial, social, and political impact of the menstrual product tax on women of reproductive age in the U.S. METHODS: The cost and sales tax collected on a sample menstrual product (Playtex Sport Tampons, Regular & Super Multi Pack, Unscented – 50 Count) was compared when purchased through online retailers Amazon, Walmart, and Target in each state of the U.S. and the District of Columbia. RESULTS: As of June 2019, thirty-five states taxed menstrual products at rates between 4.70%; in Hawaii to 9.90%; in Louisiana, with a mean of 7.41%. Among them, nineteen states taxed between 6 and 7.99%, twelve at >8%, and only four states at <6%. This financial burden decreased the accessibility of menstrual products specifically for the marginalized low-income women and women with heavy menstrual bleeding. The lack of access to menstrual products led to poor menstrual hygiene, decreased participation in work and other activities and contributed to poor quality of life. CONCLUSION: The menstrual product tax exacerbates period poverty and negatively impacts the quality of life of women by decreasing the accessibility of menstrual products. Our research supports the repeal of this tax in consideration of its financial, social, and political implications.

How fast GST is moving the Indian FMCG sector: Empirical Study

GST is one of the most critical tax reforms in India which has been long awaiting decision. It is a comprehensive tax system that will subsume all indirect taxes of State and Central Governments and whole economy into seamless nation in national market. GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the combined effect of tax on the cost of goods and services. GST is a consumption based tax imposed on sale, manufacturing and consumption on goods & services at national level. Several taxes such as central excise duty, service tax, central surcharge and cess etc. imposed by Central Government and VAT / sales tax, entertainment tax, octroi & entry tax, purchase tax, luxury tax, taxes on lottery etc. levied by State Governments have been subsumed under GST. The FMCG sector of India composes more than 50 % of the food and beverage industry and another 30 % from personal and household care. Under the proposed GST system, it is expected that it would result in a simpler tax system, especially for industries like FMCG. Under this system, a single product would be taxed at the same rate in every corner of the country meaning that an cooler will be taxed the same in Madhya Pradesh as well as Kerala thus we also refer GST as ONE NATION ONE TAX. This paper will help to present that, what is the impact of GST after its implementation; analyze the influence of GST on FMCG sector.