Latest news with #LafferCurve
Bloomberg
10 hours ago
- Business
- Bloomberg
Why Taxing the UK's Rich Less May Make Sense
The Laffer Curve does exist. You may not want it to, but it does. The UK's political class is in the process of learning this lesson. One of the first things Chancellor of the Exchequer Rachel Reeves did was to make the global assets of those living in the UK but domiciled elsewhere for tax purposes (the 'non-doms') subject to UK inheritance tax. Those people have responded to that incentive exactly as one might expect. They are leaving. Exact numbers aren't available, but many financial advisers will tell you of their fast-vanishing high-net worth clients—heading for the United Arab Emirates, Italy, Spain, Switzerland, Malta and maybe even the US (there are some 70,000 applications for information on the new ' gold Trump card ' visa, apparently). Henley and Partners, a global relocation company, backs this up. It reports that inquiries on how to become a resident elsewhere were three times higher in the first three months of 2025 than the same period in 2024.
Express Tribune
4 days ago
- Business
- Express Tribune
Juice industry seeks tax reduction
The Fruit Juice Council — a body representing the formal juice industry – has demanded the government to reduce the FED rate on the juice industry to 15%. The current 20% FED (on top of existing 18% GST) has stalled the juice industry's growth and in FY2024-25 the government's revenue projections fell short of its own expectations. This indicates that the juice industry has hit the Laffer Curve (where the taxation is so high that it results in sharp decline of sales, ultimately affecting government revenue). In line with local regulations, fruit drinks have minimum 5% fruit content, nectars have 25%- 50% fruit content and pure juices have 100% fruit content.
Business Recorder
4 days ago
- Business
- Business Recorder
Presentations to NA, Senate panels: Juice industry urges govt to lower FED to 15pc
ISLAMABAD: The Fruit Juice Council (formally juice industry) Tuesday urged upon two parliamentary panels to reduce 20 percent Federal Excise Duty (FED) to 15 percent on the juice industry to generate higher revenues during 2025-26. According to two different presentations given to National Assembly Standing Committee on Finance and Senate Standing Committee on Finance here on Tuesday at Parliament House, the budget proposes that the reduction in price on account of chilling charges be lowered from 10% to no more than 5% of the price. This will increase the burden on the manufacturers even more. Instead of reducing the FED on fruit juices, the fruit juice and beverage industry has been burdened further. The FJC strongly urges the government to reverse this budget proposal. The Fruit Juice Council, a body representing the formal juice industry, believes that the government should reduce the FED rate of 20% imposed on the juice industry to 15%, if it wants a higher revenue than the outgoing financial year. The current 20% FED (on top of existing 18% GST) has stalled the juice industry's growth and in FY2024-25 the government's revenue projections fell short of its own expectations. This indicates that the juice industry has hit the Laffer Curve (where the taxation is so high that it results in sharp decline of sales, ultimately affecting government revenue). In line with local regulations, fruit drinks have minimum 5% fruit content, nectars have 25%-50% fruit content and pure juices have 100% fruit content. Fruit-based juices are a healthier option since they contain the goodness of fruits. Punjab and Sindh Food Authorities allow the sale of fruit-based juices in educational institutions while restricting sales of any other beverages. Copyright Business Recorder, 2025
Express Tribune
4 days ago
- Business
- Express Tribune
Juice industry urges cut in FED to boost revenue
Listen to article The Fruit Juice Council (FJC), representing the formal juice industry, has urged the government to reduce the 20% Federal Excise Duty (FED) on juices to 15% to generate higher revenue than the outgoing financial year. The current 20% FED, in addition to 18% GST, has stalled industry growth. In FY2024-25, government revenue projections fell short, suggesting the industry has hit the Laffer Curve — where high taxation leads to lower sales and declining revenue. Under local rules, fruit drinks must have at least 5% fruit content, nectars 25-50%, and pure juices 100%. These juices are healthier due to their fruit content. Punjab and Sindh Food Authorities permit the sale of fruit-based juices in schools while restricting other beverages. Due to falling sales, fruit procurement dropped below 2017 levels. Only 20,233 tonnes of mangoes were purchased last year compared to 31,000 tonnes in 2017-18, hurting farmers and pulpers. While the government claims it supports a documented economy, such policies contradict that goal. The 20% FED and 18% GST are driving consumers toward low-priced, low-quality, and potentially unsafe options from the undocumented sector, which continues to grow. The budget also proposes capping the chilling charge adjustment at 5% instead of 10%, further burdening manufacturers.
Yahoo
11-06-2025
- Business
- Yahoo
The world is laughing at Britain, and only Starmer hasn't noticed
So finally, Labour's policies are resulting in tax cuts, and the Laffer Curve is back in fashion. At last, people are going to keep more of their hard-earned money, a big chunk of the national debt will be paid off and, to cap it all, minimum salaries are going to be raised and VAT on food will be reduced. Yes, the people of Mauritius sure have done well out of the Chagos deal. That £30 billion windfall, all paid for by the British taxpayer, is going to be put to excellent economy-boosting use. And who can blame them for celebrating? Their government has played an absolute blinder. Of course, we could get all picky and start asking awkward questions about why the Chagos Islands should be surrendered at all, least of all to an African country more than a thousand miles across the Indian Ocean. But that would be to rain on the Mauritian parade. It's their day and their victory, and while it was against abject, third-rate opposition, we mustn't carp. There's nothing worse than a bad loser. But we are within our rights, I reckon, to ask why good things always happen to other people. What are the chances of us British being gifted £30 billion from another country, plus a brand-new territory to paint pink on maps? I'm trying to think of an equivalent. Perhaps Spain paying us to take Tenerife off its hands, and throwing in the Women's World Cup as a juicy extra? But we British are the baddies, so we must always pay for our sins. Some international court has told us exactly that, and under the Government we elected last summer, that's final. Never mind the humiliation, the terrifying security considerations and the almighty cost. And what about the Chagossians themselves, who have been treated disgracefully throughout? Oh, sod 'em. This is the Starmer way. And hunker down, because we've got at least four more years of it. Are you happy now, you Tories who preferred to stay at home last July rather than strolling to the polling station? Ever think you might have been conned by all those bright red 'Change' placards behind Sir Keir? Well, at least when Rachel Reeves breaks yet more promises and raises our taxes in her budget this autumn, and when she comes up with yet more tripe about black holes, working people, a changing world and fixing foundations, we'll know that the rest of the world is having a darn good laugh at our expense. Yes, we are the butt of a hilarious joke by a mocking Mauritian government. And we can't complain. A baddy always gets a comeuppance in the end. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
