Bundestag resolutions Higher tobacco tax and more protection for “coffee trips”

Status: 11.06.2021 8:26 a.m.

The Bundestag passed numerous laws into the night. Among other things, the redistribution of EU agricultural subsidies was decided and the rules for so-called coffee trips tightened. Smoking will become more expensive in the future. An overview. The plenary session began on Thursday morning – it was only ended on Friday morning at 0.59 a.m. by Parliament’s Vice-President Wolfgang Kubicki. The agenda in the Bundestag was tough. In the last few weeks before the summer break, the grand coalition is trying to get as many projects as possible through parliament. An overview of the most important resolutions of the night session.

Tobacco tax is rising – and also applies to liquids

Germany’s smokers are asked to pay more. The Bundestag decided that the tobacco tax for a pack of 20 cigarettes will rise by an average of ten cents in the coming year. A year later, a further ten cents will be added, in 2025 and 2026 another 15 cents per pack will be added. Vaping e-cigarettes and tobacco heaters is also taxed higher. So-called liquids for use in e-cigarettes are to be subject to tobacco tax in the future; up to now they have been subject to sales tax. An additional tax is to be introduced for heated tobacco, so that in future there will be a taxation similar to that of cigarettes.

More consumer protection with “coffee trips” and online marketplaces

The sale of insurance, home loan and savings contracts, medical products and dietary supplements on so-called coffee trips will be prohibited in the future. In addition, the participants of such trips must be better informed about their rights by the organizer. The fine for violations will be increased from 1,000 euros to 10,000 euros. The new law also provides for a regulation according to which consumers may not be asked to pay before the end of the day on which the contract is signed for contracts that have come about as part of an unsolicited visit to the home. In the future, online marketplaces such as Amazon or eBay will have to disclose the essential criteria for their rankings of search results. They must also inform consumers whether the potential contracting parties are entrepreneurs or private individuals. Rankings in search results must not be influenced by hidden advertising or hidden payments. The platforms must also explain how they ensure the authenticity of user reviews. Fake reviews are expressly prohibited in the future. Advertising in online networks should be more recognizable in the future – this applies to influencers, for example. Labeling is not necessary if the advertiser has not received any money or similar consideration from a company.

Protection of package tours

Consumer protection is also being strengthened for package tours: a multi-million dollar fund will in future protect package travelers from possible damage in the event of bankruptcies. Tour operators are to pay 750 million euros into the fund. The fund is also intended to prevent the state from having to step in when tour operators go bankrupt. The new fund is to guarantee prepayments by customers, the repatriation of stranded holidaymakers and their accommodation until they are returned. It basically replaces the previous protection through insurance or bank guarantees. The background to this is the bankruptcy of the travel company Thomas Cook in September 2019.

Fight against tax havens and money laundering

Capital flight to so-called tax havens is expected to become less attractive in the future. If the Federal Council also approves the new regulation, operating and advertising costs for cross-border transactions can only be claimed for tax purposes if the respective states adhere to international tax standards. In addition, regulations on withholding tax, which are incurred on investment income abroad, are being tightened. The basis is a “black list” of the EU, in which “non-cooperative countries and areas” are listed, which from Brussels’ point of view facilitate tax evasion or unfair tax competition. There are twelve countries such as Panama, Fiji and the Seychelles. However, this list is controversial – mainly because it does not contain any tax havens within the EU. In order to combat money laundering and terrorist financing more effectively, the German transparency register will also be expanded and better linked internationally. Additional reporting obligations for the economy should make it easier to track down letterbox companies and to identify the people behind nested company structures. At the same time, this is intended to protect reputable companies from coming into contact with questionable business partners and criminal machinations. In addition, the investigators in Germany should work more closely with the authorities in other EU countries.

Compensation for phasing out nuclear power

The Bundestag also gave the green light for the compensation of energy companies for the accelerated nuclear phase-out. The adopted amendment to the Atomic Energy Act empowers the responsible federal ministries to conclude a public law contract “on the payment of financial compensation” which ends “all national and international legal disputes”. In March, after years of dispute with the energy companies RWE, Vattenfall, EnBW and E.on, the federal government reached an agreement on compensation: Germany pays the companies compensation totaling a good 2.4 billion euros. This compensates for residual amounts of electricity that the companies can no longer generate in their own plants, as well as investments that the companies made in reliance on the nuclear power plant life extension that came into force in 2010.

Distribution of EU agricultural subsidies approved

The Bundestag also approved the federal government’s legislative package for the distribution of EU grants for German farmers. In the coming years, this will increasingly be based on criteria such as environmental protection and animal welfare. From 2023, a quarter of Brussels direct payments will be linked to certain ecological requirements. For example, there is additional money for not using pesticides or for more nature conservation in meadows and pastures. In total, it is about six billion euros that Germany’s farmers will receive annually from the EU until 2027. So far, the distribution of such funds has largely been based on the area of ​​the farms – regardless of the impact on the environment and landscape. With the reform, small and medium-sized businesses are to receive significantly more support. Young farmers up to the age of 40 also receive more money. In addition, there will in future be a premium for grazing animal owners who have so far benefited little from the area premium. The Federal Cabinet had already adopted the new requirements for the national structure of the Common European Agricultural Policy (GAP) in April. At EU level, however, there is still a struggle about how the reform of the EU agricultural policy should be designed. The aim is to reach an agreement by the end of June. The legislative package that has now been passed, which is aimed at a Agricultural Ministers’ Conference Compromise goes back, then changed again. Previously, the Bundestag had, among other things the powers of the protection of the constitution expanded . In the course of the day, the parliament wants to pass a number of other laws of the grand coalition – for example on care reform and on Compliance with human rights in global supply chains .

Illustration. https://kinhtexaydung.petrotimes.vn The cost of pollution in Europe has risen by more than 50% this year, signaling that climate policies need to be harsher, the region is also starting to make a difference. Futures in the carbon market of Europe, the largest market in the world, exceeded $ 60 / ton for the first time on May 4. Rising prices make it more expensive to release carbon dioxide into the air and force the industry to look for cleaner ways to run production. According to Ulf Ek, investment director at London’s Northlander Commodity Advisors LLP, the bulls have to go further. He hopes the futures contract will trade as high as $ 91 / ton by the end of the year, to boost his incentive to protect the environment. The rise in prices and industry concerns about its competitiveness, poised to put further strain on political discussions about the implementation of the “Green Agreement,” aimed at achieving neutrality. on climate by 2050 and strengthening emissions reduction targets by 2030. Some technologies to cut emissions, such as hydrogen generated without pollution, are still too expensive for steel and chemical manufacturers. But further price hikes could change that. Record carbon prices in Europe will strengthen the Government budget. EU leaders are arguing about enacting stricter pollution targets over the next decade at an extraordinary summit in Brussels, to be held on May 23. On July 14, the European Commission will propose a regulatory package to enact a new goal, by 2030, to cut greenhouse gases by at least 55% from 1990 levels. Agree by national governments and the European Parliament to become the binding rule. https://kinhtexaydung.petrotimes.vn

Apartments for rent in Ho Chi Minh City are subject to tax In the field of housing, land and real estate transfer, Ho Chi Minh City Tax Department proposes to manage tax collection in apartment rental activities in apartments and buildings. STRENGTHENING MONITORING AND COMBATING TAX LOSS Subjects proposed to collect tax are individuals and organizations that lease apartments, houses, and business premises in apartment buildings; individuals and organizations directly trading in and providing services in the apartment building; individuals and organizations leasing offices. The Ho Chi Minh City Tax Department proposes to pilot the tax collection above in some apartments and buildings in District 11 such as Res 11 Apartment, located at 205 Lac Long Quan, Ward 3; Thuan Viet commercial residential area at 319 Ly Thuong Kiet, ward 15; Bao Gia building, 184 Le Dai Hanh, ward 15; apartment building 70 Lu Gia, 70 Lu Gia, ward 15; Khai Hoan building, 624 Lac Long Quan, ward 5. This unit also proposes measures to prevent loss through management of leasing, collection of land use fees, registration fees, personal income tax in land management activities and real estate business. If approved, the City Tax Department will work with the apartment management board to propose a list of apartment rental households, direct business households in the apartment area; At the same time, coordinate with the local police in reviewing the list of newspapers of temporary residence, temporary absence, list with permanent residence registration, through the Management Board of the apartment building to propagate to owners of apartments with changes about Declaration of temporary residence, self-declaration of tax, and payment of taxes for house and apartment rental is also done; propagating individuals and organizations providing office leasing services to declare and pay property rental tax. Tax authorities should study the appropriate tax rates to encourage renters to file taxes. To do the above work, the tax authority will guide households and individuals that rent out houses, apartments or offices to prepare tax registration and tax declaration documents; instructions on how to electronically submit tax returns and declarations; guide to tax non-agricultural land use; answer questions of taxpayers. In addition, the tax authority will also mobilize individuals, rental businesses and office rentals to provide information on the lease to have a basis for determining and comparing the actual rental price and the declared price. Tax payment of apartments, individuals for rent houses, apartments, office rentals. Thereby, basing on and comparing tax declaration data for real estate transactions in the same area, area, size, and area respectively to take grounds to force taxpayers to declare tax with the correct value. actual assignment. In addition, the Ho Chi Minh City Tax Department requested the authorities to review the cases of land lease in order to have the correct collection regime. In cases where there is a decision on land allocation from the People’s Committee of Ho Chi Minh City but the financial obligations have not been determined, the Department of Natural Resources and Environment quickly determines the financial obligations to collect land use fees. When there is a notice of implementing financial obligations from the Ho Chi Minh City Tax Department but the enterprise has not paid the land use fee, it will be reported to the People’s Committee of Ho Chi Minh City for handling measures. RECOMMENDATIONS TO REVIEW TAX PAYMENTS Most experts in the real estate sector say that: The profit for renting apartments is not high, if based on the total value of investment in this segment. In particular, during the current epidemic outbreak, the rental rates of serviced apartments are low, increasing pressure on homeowners. Mr. Hoa Binh has an apartment for rent in District 10, Ho Chi Minh City that is quite frustrated by this proposal. He said: “My wife and I buy an apartment and have to borrow money from the bank, pay both principal and interest more than 12 million dong each month, while the apartment for rent is only 15 million dong, so only 13.5 million dong / month. If the tax authority calculates 10%, ie the tax rate of 16.2 million, it is almost only enough to repay bank loans interest. The threshold for tax calculation of 100 million VND / year is considered unreasonable, leading to many consequences, they have to circumvent the law to declare rent at much lower prices, change to the form of capital contribution for house loans … legal trouble when a dispute occurs. “Not to mention, there are months when customers pay their houses, have to find new tenants and lose commissions from 50% -100% / month, then this type of apartment investment becomes a loss. In addition, for the money to repair the house when it is damaged or when the apartment is profitable, I have already paid transfer tax. Therefore, the tax authority should study the reasonable tax rate to encourage people who have rental houses to declare tax, “Mr. Hoa Binh said. Many experts also suggested: Currently, the family allowances have been raised to 11 million VND / month (equivalent to 132 million VND / year), but the threshold for calculating tax of 100 million VND / year is not reasonable. That leads to many consequences, they have to circumvent the law to declare rent at much lower prices, switch to the form of capital contribution for home loans … causing many legal troubles when disputes occur. In particular, there are many people who cannot afford the economy, so they have to rent an apartment and rent it out to a cheaper place to live, the balance is used to offset the bank interest … At an apartment for rent in Gold View District 4 Ho Chi Minh City, Mr. Nguyen Minh Quang, a software engineer, worries: the tightening of apartment rental tax as today is very likely, the landlord will increase more money. renting and the pressure of husband and wife is even greater. Especially in Covid’s present occasion, the family’s income has decreased by 25%.