Latest news with #taxincrease
Zawya
4 days ago
- Business
- Zawya
Gold mining companies in Ghana, Ivory Coast resist tax hikes, sources say
Gold miners operating in Ghana and Ivory Coast are refusing to comply with tax increases imposed this year, saying the new regulations flout their existing licence agreements, industry sources told Reuters. Countries across West Africa have been taking advantage of soaring gold prices to increase mining taxes and raise additional revenue to plug gaping budget deficits and ease high debt levels. Mining companies in the region have mostly complied apart from in Ghana and Ivory Coast, Africa's top and seventh biggest gold producers respectively, where companies say terms agreed when licenses were granted should be honoured by both parties to protect and spur investment, the six industry sources said. Mining companies have agreed between themselves not to pay the extra taxes while they negotiate with the Ivory Coast and Ghana governments to repeal the hikes, according to the sources. Producers in the two countries include Gold Fields, Newmont, AngloGold Ashanti, Barrick , Endeavour, Allied Gold and Perseus. They all declined to comment or did not respond to Reuters' requests for comment. In January, Ivory Coast introduced a flat royalty tax of 8% of annual revenue, according to a document seen by Reuters, up from 3%-6% previously, depending on the miner's contract. Ghana, which has defaulted on its debt and is undergoing a debt restructuring, raised a tax on gold miners' annual gross output to 3% in March, from 1%, after appealing to the companies to help it plug revenue gaps, said a source in the country's finance ministry. "If people have invested for the long term and you change the rules midway, it can affect the project. New rules can apply to new projects," said an executive at a major international mining company operating in Ivory Coast, who asked not to be named. The mines and finance ministries in Ghana and Ivory Coast did not respond to Reuters requests for comment. Elsewhere in the region, military-ruled Burkina Faso introduced a sliding scale royalty regime in February, linking royalties to gold prices, which miners have largely complied with, two other sources familiar with the matter said. Miners in Mali, Niger and Guinea have also been mostly complying with aggressive regulations introduced by new mining codes. ONGOING NEGOTIATIONS Gold prices have surged nearly 30% this year, driving up profits for gold miners in the first quarter, but sudden regulatory changes are a frequent obstacle to doing business in Africa. Barrick has been in a two-year standoff with Mali's military-ruled government over new mining legislation aimed at boosting state revenue, a dispute that has seen the Canadian miner's Loulo-Gounkoto complex shut, executives detained and its share price plunge. Barrick, which also has operations in Ivory Coast, did not respond to a Reuters request for comment. Miners in Ivory Coast are currently holding talks with the mines and finance ministries to break the impasse over the new taxes, a mining executive said. In Ghana, the companies under the Ghana Chamber of Mines have asked the government to reconsider its measures. If talks fail, companies could face financial penalties for delayed tax payments if the governments insist on the tax increases. One mining company in Ghana, which did not want to be named, said the tax authority has the right to shut a company's operations and impose penalties. The companies could also choose to sue if they can prove their contracts should be immune to tax hikes. Denis Gyeyri, Africa Senior Program Officer at the nonprofit Natural Resources Governance Institute, said governments are too quick to raise taxes when prices spike but don't lower them when prices fall. "Royalty rates should be progressive - compensating mines at low prices and maximizing government revenue at high prices," Gyeyri said. Countries should also keep their tax rates competitive, he said, pointing out that royalty rates for miners in Western Australia, for example, vary between 2.5% and 7.5% depending on the extent of processing. (Reporting by Maxwell Akalaare Adombila; Additional reporting by Loucoumane Coulibaly in Abidjan and Emmanuel Bruce in Accra; Editing by Veronica Brown and Susan Fenton)
Malay Mail
5 days ago
- Business
- Malay Mail
Vietnam hikes beer, liquor tax by 5pc yearly, set to hit 90pc by 2031
HANOI, June 15 — Vietnam's lawmakers approved raising the tax on beer and strong alcoholic beverages yesterday to 90 per cent by 2031 from the current 65 per cent, state media said. The tax rate on liquor with more than 20 per cent alcohol content and all beers will rise five percentage points yearly from 2027 before reaching 90 per cent in 2031 under the National Assembly's new legislation. Levies will also increase by five percentage points annually for other drinks with alcohol content below 20 per cent, which are currently subject to a 35 per cent tax, reaching 60 per cent by 2031. 'The gradual annual tax increase is not intended to change behaviour but rather to help consumers adapt more easily,' Hoang Van Cuong, a member of parliament, told the assembly in March. Lawmakers also approved a new levy of eight per cent on beverages containing more than five grams of sugar per 100 millilitres, taking effect in 2027 and increasing to 10 per cent in 2028. Beer sales in Vietnam took a hit following the introduction of a strict zero-alcohol rule for drivers in 2019. However, Dan Martin, an International Business Advisor at Dezan Shira & Associates, said Vietnam's drinking culture has roots 'that run far too deep to be uprooted by policy alone'. 'Rather than spelling doom for the beer market, these measures represent more of a speed bump than a roadblock,' he told AFP. Martin said that behavioural shifts were already underway, with more Vietnamese people consuming alcohol at home rather than at traditional venues such as bars. The trend 'isn't just consumers reacting to new rules', he said. Vietnam ranked seventh globally in beer consumption in 2022, according to a report by Kirin Holdings, a Japanese beer company. Nearly 41,000 Vietnamese people die each year due to alcohol consumption, according to the health ministry. — AFP
Yahoo
6 days ago
- Business
- Yahoo
Schuylkill Haven school board unanimously approves 2.4 mill tax increase
Taxes are increasing for Schuylkill Haven Area School District residents. On Wednesday the school board unanimously approved a $26.4 million 2025-26 budget with a 2.4-mill increase. This brings the district's tax rate to 46.9 mills, meaning a tax bill of $4,690 for a property assessed at $100,000. Kimberly Umphrey, district manager, said at a meeting in May that an increase in state homestead/farmstead funding would provide another $49 in tax savings to the average property owner. Factoring in homestead/farmstead exclusions, the average homeowner will see an annual tax increase of $42. The budget includes a $2.5 million deficit, with the spending attributed to rising contractual salary, benefit and health insurance expenses and increasing costs for cyber charter schools and special education outplacement, officials said. 'This administrative team will do everything in our power to chip away at that deficit,' Fitzpatrick said in May. 'We do every year. We've already begun conversations about how we can share (staff) positions, how we can bring more kids back out of placement.' Last year's budget included a $1.7 million deficit, which was reduced to $320,000. Schuylkill Haven has $5.4 million in its reserve fund balance.
The Independent
12-06-2025
- Business
- The Independent
Tax hikes ‘almost certainly' to come if economy worsens, IFS says
The Institute for Fiscal Studies (IFS) warned that further negative economic news will 'almost certainly' lead to more tax increases, putting pressure on Chancellor Rachel Reeves. Council tax is projected to rise at its fastest rate in 20 years, with potential annual increases of up to 5 per cent as local governments struggle to close funding gaps. The IFS suggested more people may be forced to pay higher income tax rates due to 'fiscal drag,' potentially generating an additional £10bn a year by 2029. Government sources did not deny the possibility of extending the freeze on tax thresholds, stating that future tax decisions will be made at the Budget. IFS director Paul Johnson criticised the Treasury for 'making up the numbers' and described Chancellor Reeves' recent speech as 'baffling,' while also expressing concerns about the cost of Labour's childcare promises.
CTV News
12-06-2025
- Business
- CTV News
Mayor ‘confident' property tax increase will come in below target— and then some
It took some budget wrangling, but Mayor Morgan believes next year's tax increase will be under 5 per cent. CTV London's Daryl Newcombe reports. It took some budget wrangling, but Mayor Morgan believes next year's tax increase will be under 5 per cent. CTV London's Daryl Newcombe reports. Mayor Josh Morgan is now expressing confidence he can get the 2026 property tax increase below 5 per cent, and that doesn't include an additional $8.45 million available from last year's massive surplus. On Wednesday, members of the Budget Committee wrangled over a number of proposals intended to reduce next year's tax increase that currently stands at 7.4 per cent in the multi-year budget. Coun. Susan Stevenson's request for a business case about reducing the size of the Heritage Planning Department sparked a lengthy debate about Civic Administration's internal service review process. 'When it comes to the service review, council doesn't play a role,' argued Stevenson. 'When do we get to look (at department budgets) line by line? When do we get to hear about the departments? What they're doing, what they're focused on, and why the numbers are up?' A number of councillors emphasized that staffing levels are part of Civic Administrations ongoing service review process. 'When they've done the review and when they do it again next year, if they identify that there are some changes needed in the Heritage Department that's the appropriate time for that to come forward,' explained Coun. Skylar Franke. 'I have full confidence and trust in staff to be able to do that in a transparent and regular manner.' But Stevenson suggested the tax relief being demanded by many Londoners will require a deeper dive into municipal spending, 'We are going to have to find areas to cut costs. That is just for sure. What [cuts] are we going to look at if we don't want to look anywhere?' Mayor Josh Morgan Mayor Josh Morgan presenting a report to the Budget Committee on June 11, 2025. (Daryl Newcombe/CTV News London) During 2024-2027 Municipal Budget deliberations, Civic Administration's internal service reviews have provided savings of $14 million in 2024, $6.8 million this year, and $6 million (so far) for 2026. The mayor defends the internal process that includes right-sizing municipal departments and services, 'In 2016, council developed the robust service review process that has returned well over $250 million to Londoners and avoided tax increases. This is the department by department review [and] zero based budgeting.' The Budget Committee meeting also included a presentation by the mayor about mandatory Development Charge (DC) exemptions for affordable housing and other qualifying developments. A letter from Ontario's Ministry of Municipal Affairs and Housing confirms that the City of London is not required to continue setting aside millions of dollars each year to offset the exemptions. Savings to the property tax supported budget, water budget, and wastewater budget will total $10 million in 2026—and avoid a $32 million projected shortfall in 2027. 'This is very positive! I really appreciate the lobbying work that you (the mayor), the folks at AMO (Association of Municipalities of Ontario), and our staff have done,' said Coun. Sam Trosow. However, Stevenson said provincial policies have not changed since budget deliberations a few years ago when she tried to convince colleagues that offsetting the DC exemptions was unnecessary. 'The fact that this was available to us, the fact that clarity is coming so late, I think is a little bit concerning,' she asserted. 'You can say this is fact, but those aren't facts,' responded Morgan, who added that the province's clarification was necessary for London and other municipalities to discontinue backfilling the exemptions. 'The only people who can interpret the [Development Charges] Act with the authority that gives us the courage to take these sorts of actions are the people who pass that legislation, which is the provincial government,' he told Stevenson. Achieving the mayor's tax target of below 5 per cent will require about $13 million in new revenue and/or savings. Morgan said his target is now within striking distance, 'We've got boards and commissions who have said they're looking for savings, so with their help, the continued work of our staff, [and] the continued work of this council through the budget process, I'm confident that we can get under five [per cent] now.' In addition, council set aside $16.9 million from last year's massive budget surplus for tax relief purposes in 2026 and 2027. Utilizing $8.45 million each of those years would further reduce the 2026 tax increase by about another 1 per cent. Morgan will release his draft budget Oct. 27. The public will then be asked to provide input prior to budget deliberations by council in late November.
