Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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June 2026 GST Collection Rises 13.9% Year-on-Year to ₹1.94 Lakh Crore
India's GST collections for June 2026 reached ₹1.94 lakh crore, marking a 13.9% year-on-year increase. This strong performance reflects continued economic activity and improved tax compliance across the country. The figures highlight the sustained buoyancy in indirect tax revenues under the GST framework, which consolidates multiple taxes into a unified system. Consistent double-digit growth signals robust domestic consumption and strengthened enforcement mechanisms by tax authorities. The data is significant for fiscal planning, as GST revenues are a key component of both central and state government finances in India.
Slovakia: Draft VAT reform introduces ViDA measures and OSS expansion
Slovakia has published a draft VAT reform proposal incorporating measures from the EU's VAT in the Digital Age (ViDA) initiative along with expansions to the One Stop Shop (OSS) scheme. The draft introduces digital reporting requirements and e-invoicing mandates aligned with ViDA's platform economy and single VAT registration pillars. OSS expansion aims to simplify VAT compliance for cross-border suppliers of goods and services. The reform reflects Slovakia's effort to modernize its VAT system in line with EU directives, reducing administrative burdens while improving tax collection efficiency and combating VAT fraud through enhanced transaction reporting.
EU Framework for Taxation of the Financial Sector
The EU is developing a framework for taxation of the financial sector, addressing how financial services should be treated under European tax rules. This is significant given that financial services are largely exempt from VAT under current EU law, and ongoing discussions explore whether reforms such as a financial transactions tax or revised VAT treatment could modernize the sector's tax obligations. The framework aims to ensure fair taxation across EU member states while maintaining competitiveness of European financial markets.
EU – EU Budget: European Digital Service Tax in Scope
The EU is considering a European-level Digital Services Tax (DST) as part of its budget framework for the 2028–2034 multiannual financial period. This proposal would introduce a bloc-wide levy on digital services revenues, potentially replacing or complementing existing national DSTs across member states. The initiative reflects ongoing efforts to establish a harmonized EU own-resource revenue stream targeting large digital economy players. The move aligns with broader international discussions on taxing the digital economy and could have significant implications for multinational tech companies operating across EU member states.
Consultation on Zero VAT Rate for Social Housing Land
A consultation has been launched regarding the application of a zero VAT rate to land used for social housing. This measure aims to reduce the cost of developing affordable and social housing by removing VAT on qualifying land transactions. The zero-rating would support government objectives to increase social housing supply by making land acquisition less financially burdensome for housing associations and developers. Stakeholders are invited to submit views on the scope, eligibility criteria, and implementation of the proposed zero VAT rate, with implications for both the construction sector and public housing policy.
European Commission Proposes DAC Recast to Simplify EU Tax Reporting Framework
The European Commission has proposed a recast of the Directive on Administrative Cooperation (DAC) to streamline and simplify the EU's tax reporting framework. The proposal seeks to consolidate existing DAC amendments, reduce administrative burdens, and improve clarity for tax authorities and taxpayers across member states. Key elements include rationalising automatic exchange of information obligations and updating provisions to reflect current digital economy realities. The recast aims to enhance consistency in cross-border tax reporting while maintaining transparency standards, with implications for financial institutions, multinationals, and tax administrations throughout the EU.
Priority for Tax Claims Restored in Restructuring
A jurisdiction has restored the priority status of tax claims in restructuring and insolvency proceedings, reversing previous reforms that had subordinated or equalised tax debts with other creditor claims. The reinstatement means that tax authorities will again rank higher than unsecured commercial creditors when assets are distributed during restructuring processes. This change has significant implications for businesses undergoing financial reorganisation, lenders assessing credit risk, and insolvency practitioners managing creditor hierarchies. The policy shift reflects governments prioritising revenue recovery and reinforcing the preferential standing of public fiscal claims in insolvency law.
Govt increases tax on restaurant card payments
Pakistan's government has increased the tax rate applied to restaurant payments made by card. The measure targets card-based transactions at dining establishments, likely as part of efforts to broaden the tax base and encourage documented economic activity. The policy reflects ongoing fiscal tightening under Pakistan's IMF-linked reform agenda, with authorities using withholding or sales tax mechanisms on electronic payments to capture revenue from the hospitality sector. Card payment surcharges are increasingly used as a tool to distinguish between filers and non-filers, with higher rates applied to non-compliant taxpayers.
FBR enforces Rs25,000 surcharge payment for individuals from July 1
Pakistan's Federal Board of Revenue (FBR) has begun enforcing a Rs25,000 surcharge on individual taxpayers effective July 1. The surcharge appears to target non-filers or individuals falling under specific compliance thresholds, reflecting the government's push to widen the personal income tax base and penalize non-compliance. The enforcement mechanism signals a stricter approach to personal tax obligations under Pakistan's ongoing fiscal consolidation program. FBR's move aligns with broader efforts to increase documentation of the economy and improve revenue collection from individuals who have historically avoided the formal tax system.
World Bank urges fiscal reforms to strengthen service delivery, stability in Pakistan
The World Bank has urged Pakistan to undertake comprehensive fiscal reforms to improve service delivery and macroeconomic stability. The recommendations include strengthening tax administration, broadening the tax base, and rationalizing public expenditure. The report highlights structural weaknesses in Pakistan's revenue collection system and calls for policy measures to increase the tax-to-GDP ratio. Reforms to direct and indirect taxation, along with improved intergovernmental fiscal transfers, are identified as critical to sustaining growth and funding essential public services. The guidance reflects ongoing multilateral pressure on Pakistan to meet fiscal consolidation targets.
Is the European Commission’s Tax Omnibus Proposal a Step in the Right Direction?
The European Commission's Tax Omnibus proposal is examined for its potential to streamline and simplify EU tax rules. The analysis considers whether the proposal moves in the right direction by reducing compliance burdens, harmonizing tax frameworks across member states, and addressing outstanding issues in areas such as the global minimum tax (Pillar Two) and other corporate tax directives. The Tax Foundation evaluates the proposal's merits and shortcomings, assessing whether it genuinely advances efficient, growth-friendly tax policy within the EU or risks introducing new complexities despite its simplification intent.
Latindadd y CIAT celebran 15 años de colaboración para fortalecer la cooperación tributaria en América Latina y el Caribe
Latindadd and CIAT (Inter-American Center of Tax Administrations) are celebrating 15 years of collaboration aimed at strengthening tax cooperation across Latin America and the Caribbean. The partnership has focused on improving tax policy, combating tax evasion, promoting tax justice, and enhancing the capacity of tax administrations in the region. Their joint work has contributed to regional dialogue on fiscal transparency, progressive taxation, and international tax standards, reinforcing institutional frameworks that support equitable and efficient tax systems throughout Latin American and Caribbean countries.
Some Republicans Join Missouri Democrats in Push Against Income Tax Phaseout
A bipartisan coalition in Missouri, including some Republicans joining Democrats, is pushing back against the state's planned income tax phaseout. The initiative reflects growing concern about the fiscal impact of gradually eliminating the state income tax, which could significantly reduce state revenue. Opponents argue the phaseout would harm public services and disproportionately benefit higher earners, while proponents see it as a path to greater economic competitiveness. The unusual cross-party alliance signals meaningful legislative resistance to what had been a Republican-led tax reduction agenda in Missouri.
Could Initiative to Kill Washington’s ‘Millionaires Tax’ Also Kill the State’s Capital Gains Tax?
A Washington State ballot initiative aimed at repealing the new high-earner 'millionaires tax' may have broader legal implications, potentially threatening the existing capital gains tax as well. Legal analysts suggest the initiative's language and constitutional arguments could undermine the capital gains tax's legal footing, which has already faced court challenges. Washington has no traditional income tax, making both levies politically and legally contentious. The outcome could significantly reshape the state's revenue structure and set precedents for how such taxes are classified under the state constitution.
CRA Agents Answer Only 17% of Tax Questions Accurately: What Canadian Taxpayers Must Know About the Auditor General and Ombudsperson Reports
Canada's Auditor General and Ombudsperson reports reveal alarming deficiencies in the Canada Revenue Agency's taxpayer services, with CRA agents correctly answering only 17% of tax questions. The reports highlight systemic failures in taxpayer assistance, including long wait times, incorrect guidance, and inadequate support for Canadians navigating complex tax obligations. These findings raise serious concerns about CRA's accountability and the reliability of official tax advice. Canadian taxpayers are urged to seek professional tax counsel rather than relying solely on CRA helplines, and the reports call for significant reforms to improve service quality and taxpayer rights protection.
Zimbabwe Plans VAT Removal on Fish Products to Boost Local Fisheries
Zimbabwe is planning to remove VAT on fish products as a policy measure to support and stimulate the growth of its local fisheries sector. The proposed VAT exemption aims to reduce costs along the fish supply chain, making locally produced fish more affordable for consumers and more competitive for domestic producers. This targeted tax relief reflects Zimbabwe's broader strategy of using VAT policy to support key agricultural and food security sectors. The move would reduce the tax burden on fisheries businesses and potentially encourage investment and expansion in the industry.
Jamaica Urged to Press Ahead with Digital Services Tax Despite Trump Tariff Threat
Jamaica is being urged to proceed with implementing a Digital Services Tax (DST) despite threats from the Trump administration of retaliatory tariffs against countries adopting such measures targeting US technology companies. Proponents argue that Jamaica should not be deterred from taxing digital services consumed domestically, asserting its sovereign right to broaden its tax base. The situation highlights the ongoing geopolitical tension between the US and countries pursuing DSTs, a dynamic that has complicated international digital tax negotiations globally. Jamaica's decision will have implications for its fiscal revenues and trade relationship with the United States.
New Boston Tax Rule Shields Seniors From Losing $1K-$2K Tax Credit
Boston has introduced a new tax rule protecting senior residents from losing a $1,000–$2,000 property tax credit due to technical or administrative reasons. The change shields elderly homeowners who qualify for the senior tax credit from forfeiting the benefit, addressing concerns that minor compliance issues were causing eligible seniors to lose meaningful financial relief. The rule is part of broader efforts to make tax relief programs more accessible and equitable for older, often fixed-income residents in the city.
SALT Round-Up—Current Developments in Key Jurisdictions
This article provides a roundup of current state and local tax (SALT) developments across key U.S. jurisdictions, covering legislative, administrative, and judicial changes affecting businesses and individuals. It addresses evolving state tax rules including income tax, sales tax, and other levies at the state and local level. The piece serves as a practical update for tax professionals navigating the complex and frequently changing SALT landscape, highlighting significant rulings, new legislation, and compliance considerations across multiple states. It is a useful reference for CPAs and advisors managing multi-state tax obligations.
Bankman et al: Home Production and the Income Tax
Academic paper by Bankman et al. examines the treatment of home production under the income tax system. The study explores how unpaid household labor and self-produced goods or services—activities that generate economic value but fall outside traditional market transactions—interact with income tax principles. The paper questions whether current tax frameworks adequately capture or appropriately exempt home production, analyzing implications for tax equity and efficiency. The research contributes to ongoing scholarly debate about broadening or refining the income tax base to account for non-market economic activity.
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