Multiple Taxation

Multiple Taxation

A situation in which the same earnings are taxed more than twice. For example, multiple taxation may occur when a publicly-traded company pays corporate taxes on its earnings. It then passes on some of those earnings to shareholders as dividends, on which they must pay a capital gains tax at the federal level and then again at the state level. Various means exist to reduce multiple taxation. See also: Tax avoidance.
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The young people emphasized on the need for government to reduce unemployment by paying attention to young people through the elimination of multiple taxation and increasing budgetary allocation to education.
And while states must have credit or other mechanisms available so that multiple taxation will not occur if all states used the same approach, this protection against multiple taxation can lose much of its force if, in fact, the states use different approaches to determining taxes due.
Reacting to a story in the Star yesterday titled 'Sacco savers dividends drop as tax takes effect', angry members and social media users accused the government of multiple taxation that drain incomes, kills the savings culture and hence poverty.
'The exemption announced in Budget 2019 is aimed at preventing rising cost due to multiple taxation and ensuring competitiveness in local services industries,' he said.
The first one; freezing accounts of those non-filers with a balance beyond one crore rupees which is no sizeable amount considering its highly depreciated value and the multiple taxation of the common man at source anyway, is a patently coercive method in preference to facilitating and encouraging new filers who had largely stayed away because of heavy and unrealistic tax slabs; add to it the scary prospect that the step threatens to discourage overseas Pakistanis sending in money which will further deplete Pakistan's national reserves.
There are multiple taxation authorities and more than 50 different types of taxes.
Overall, GST has brought a multi edged positive impact on the sector, bringing in more transparency, eradicating multiple taxation systems and making the system more systematic and streamlined.
"Along with an unpredictable regulatory regime, business growth and expansion have been hampered by high and multiple taxation, high costs of energy, scarcity of the technical skills and the high cost of labour," she said.The association also said President Kenyatta's Big Four Agenda has singled out manufacturing as one of the key drivers of economic growth and to achieve this growth, the sector has to grow at 36 per cent every year.
When we met with him recently, we received a very good hearing from the new Tourism Minister who understood our concerns over high industry costs, punitive business rates rises and existing multiple taxation.
The minister added that a common solution that covers the entire European Union is also important, because different tax rules in member states can create multiple taxation and lead to a belief that doing business outside of the EU is more lucrative than inside.
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