Latest news with #excise tax
CBS News
26-07-2025
- Automotive
- CBS News
Trump and Newsom have made competing claims about California gas prices. We checked the facts.
Californians are bracing for higher gas prices following an increase to the gas excise tax and regulatory changes to the state's fuel standards that went into effect on July 1. In response, Gov. Gavin Newsom's office published a series of fact checks on its website, aimed at countering what the governor has called a "concerted misinformation campaign" about the state's fuel costs. The effort comes as President Trump continues to blame California's environmental regulations and taxes for what he has described as the state's exorbitant gas prices. CBS News examined claims from the governor and president about the state's gas prices. Mr. Trump cited incorrect figures, and while Newsom's "fact checks" mostly hold up, some omit key context or rely on outdated data. Here's a breakdown of the findings. During a recent White House breakfast, Mr. Trump said, "Gas has gone to the lowest level in decades and you're seeing $1.99, $1.98. And I saw $1.95 at certain states," but in California, "You're at $6, $7, they just add taxes." Both claims are false. GasBuddy, a company that tracks gas prices nationwide, told CBS News that no state has averaged between $1.95 to $1.99 per gallon at any point this year. Auto club AAA also confirmed that no state average has fallen below $2. As for California, GasBuddy and AAA said the average price per gallon has not reached between $6 and $7 at any point this year. While individual gas stations may charge more, statewide averages have remained below that range. California's average gas price last topped $6 in October 2023, according to GasBuddy and AAA data. The state's all-time high was $6.43 on June 16, 2022, GasBuddy data shows. A White House spokesperson told CBS News that Mr. Trump's "energy agenda has restored gas prices to historic lows across the country," and argued that California and other blue states are seeing higher prices due to "radical climate policies and high taxes." On the governor's website, Newsom pushes back on a University of Pennsylvania prediction that gas prices would rise by 65 cents or more "in the near term." He argues that two policy changes that took effect in July –- an annual inflation adjustment and updates to the state's fuel standard — would likely increase prices by only a few cents per gallon. The governor is correct that the state's gas excise tax rose by 1.6 cents per gallon due to the inflation adjustment. While suppliers pay the tax, the cost is often passed on to consumers. However, Newsom cites an expert's outdated 5- to 8-cent-per-gallon figure when estimating the impact of changes to the state's Low Carbon Fuel Standard. That expert, Colin Murphy of the Low Carbon Fuel Policy Research Initiative at University of California, Davis, told CBS News he now estimates the impact to be around 8 to 9 cents per gallon. Still, Murphy said, an increase as large as 65 cents would require a "jaw-droppingly implausible combination of unlikely events." Newsom disputes disputes a prediction from one energy specialist that gas prices could spike to $8.43 per gallon in 2026 due to the closure of two key oil refineries in California. He said the projection, which he called "unscientific," comes from a May report by USC professor Michael Mische, whom Newsom says has ties to the oil industry and the government of Saudi Arabia. Mische noted in a statement to CBS News that his models would produce lower estimates today based on current information and other refinements to his calculations. He disputed the governor's claim that he had a conflict of interest, stating that his work for the Saudi Arabian government focused on its transition away from petroleum. Newsom cites experts from Stanford University's Institute for Economic Policy Research to support his claim that refinery closures would create negligible increases on gas prices. The analysis focused on the closure of a single refinery and found that while it would likely have little effect on gas prices, at the upper range of their estimate it could potentially raise prices by up to 15 cents per gallon. However, Reuters reported that California officials are now attempting to find a buyer for a refinery owned by Valero in Benicia, near San Francisco, to prevent its closure. The decision highlights concerns about the potential impact it could have on the fuel supply and prices. A July report from the U.S. Energy Information Administration, a semi-independent agency under the Department of Energy, projects a 17% loss in California's refining capacity with the closures of Valero's and Phillips 66's refineries in Benicia and Los Angeles, respectively. The agency said this supply loss won't be easily offset given the state's limited connectivity to other refinery hubs around the country. Although new state policies may help to limit price volatility, the EIA projects a "small increase" in West Coast retail gas prices next year due to the closures.
LBCI
21-07-2025
- Business
- LBCI
Lebanon suspends additional excise tax on gasoline and diesel following Shura Council ruling
The media office of the Ministry of Finance issued a statement noting that, following receipt of a letter from the General Secretariat of the Council of Ministers regarding the suspension of the additional excise tax on gasoline and diesel oil—and based on the State Shura Council's decision No. 219/2024-2025 dated July 15, 2025—the Ministry of Finance has announced the implementation of this decision through Lebanese Customs. Accordingly, the Higher Customs Council addressed a letter to the Directorate General of Customs requesting the suspension of the additional flat domestic consumption tax on gasoline and diesel. The letter stated that, based on the aforementioned correspondence, 'the Council has decided to suspend its decision No. 49/2025 dated June 2, 2025 (amending item No. 685 of the customs tariff), and to halt the application of the additional flat domestic consumption tax on gasoline and diesel, which is collected under code 04H in the customs information system, effective immediately.' This is in accordance with the State Shura Council decision No. 219/2024-2025 dated July 15, 2025, and the letter from the General Secretariat of the Council of Ministers No. 1388/M.S. dated July 21, 2025, which mandates compliance with the implementation of this decision.
Gulf Business
18-07-2025
- Business
- Gulf Business
UAE tightens tax rules on sugary drinks: What you need to know
The Ministry of Finance and the Federal Tax Authority (FTA) in UAE have announced a major revision to the excise tax structure applied to sugar-sweetened beverages (SSBs), introducing a new tiered volumetric model that links the tax per litre to the beverage's sugar content. Read- Under the updated mechanism, the higher the sugar content per 100ml, the higher the tax rate applied per litre. This marks a departure from the current flat-rate model, which taxes all SSBs equally regardless of sugar levels, Part of broader health and sustainability strategy The move aligns with the UAE's broader public health strategy aimed at reducing sugar consumption, encouraging healthier lifestyles, and incentivising manufacturers to lower sugar content in their products. The revised tax model is expected to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. Authorities say the early announcement is intended to give suppliers, importers, and other stakeholders sufficient time to prepare. Businesses are advised to begin updating internal systems, reviewing product formulations, and ensuring their tax records are aligned with the new framework. According to the Ministry of Finance, the enhanced model reflects the UAE's commitment to using innovative financial and legislative tools to support national health goals. Unlike the previous classification-based approach, the new system directly links the tax burden to sugar content, thereby tying fiscal measures to health outcomes. 'The updated mechanism encourages manufacturers to reduce added sugars and empowers consumers to make more informed dietary choices,' the Ministry said in a statement. The policy also contributes to broader regional efforts to harmonise tax systems across the Gulf and supports the use of taxation as a lever for sustainable development. Implementation set for 2026 with industry support measures To ensure a smooth rollout, the Ministry of Finance, in cooperation with the Federal Tax Authority and other relevant entities, will launch public awareness campaigns in the coming months. These efforts aim to educate stakeholders and ensure full compliance across the business sector ahead of the 2026 implementation. The system has been developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national public health priorities and measurable improvements in dietary behaviour. Further details, including specific tax rates and implementation guidelines, will be released in due course to support businesses during the transition period.
Zawya
18-07-2025
- Business
- Zawya
UAE: MoF, FTA announce amendment to excise tax on sugar sweetened beverages
The Ministry of Finance and the Federal Tax Authority (FTA) have announced an amendment to the excise tax mechanism applied to sugar sweetened beverages (SSB's), introducing a tiered volumetric model that links the tax value on each litre of a sugar sweetened beverage to its sugar content per 100ml. The higher the sugar content per 100ml, the higher the tax per litre, marking a shift from the flat rate currently applied to these beverages. This amendment is part of the UAE's broader efforts to promote public health, reduce the consumption of high-sugar products, and encourage manufacturers to lower sugar levels in their beverages. The announcement follows a proactive approach aimed at providing suppliers, importers, and stakeholders sufficient time to prepare for the upcoming changes. This includes updating internal systems, reviewing product formulations, and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model. The updated mechanism is scheduled to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. The Ministry of Finance stated that this enhanced model reflects the UAE's commitment to adopting flexible financial and legislative tools that promote healthy lifestyles. Unlike the previous model, which was based on product classification, the new system ties the tax rate directly to the level of sugar content, and by extension, to the associated health impact. This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices. This direction also supports efforts to strengthen Gulf-wide tax policy integration and reinforces the use of taxation as a strategic tool to advance sustainable development goals. The Ministry confirmed that comprehensive awareness campaigns will be launched—jointly with the Federal Tax Authority and relevant health and regulatory entities—to ensure a smooth transition and full readiness across the business ecosystem once the legislative tool is in place. Notably, the system was developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national health objectives and to deliver measurable improvements in dietary consumption patterns. Businesses across the UAE will be granted sufficient time to prepare for the implementation of the new mechanism. Additional details will be announced in the coming period to support businesses in achieving full compliance with the updated policy.
Zawya
18-07-2025
- Business
- Zawya
Ministry of Finance and Federal Tax Authority announce amendment to excise tax on sugar sweetened beverages through introduction of a tiered volumetric model
UAE, The Ministry of Finance and the Federal Tax Authority (FTA) have announced an amendment to the excise tax mechanism applied to sugar sweetened beverages (SSB's), introducing a tiered volumetric model that links the tax value on each litre of a sugar sweetened beverage to its sugar content per 100ml. The higher the sugar content per 100ml, the higher the tax per litre, marking a shift from the flat rate currently applied to these beverages. This amendment is part of the UAE's broader efforts to promote public health, reduce the consumption of high-sugar products, and encourage manufacturers to lower sugar levels in their beverages. The announcement follows a proactive approach aimed at providing suppliers, importers, and stakeholders sufficient time to prepare for the upcoming changes. This includes updating internal systems, reviewing product formulations, and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model. The updated mechanism is scheduled to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. The Ministry of Finance stated that this enhanced model reflects the UAE's commitment to adopting flexible financial and legislative tools that promote healthy lifestyles. Unlike the previous model, which was based on product classification, the new system ties the tax rate directly to the level of sugar content, and by extension, to the associated health impact. This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices. This direction also supports efforts to strengthen Gulf-wide tax policy integration and reinforces the use of taxation as a strategic tool to advance sustainable development goals. The Ministry confirmed that comprehensive awareness campaigns will be launched—jointly with the Federal Tax Authority and relevant health and regulatory entities—to ensure a smooth transition and full readiness across the business ecosystem once the legislative tool is in place. Notably, the system was developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national health objectives and to deliver measurable improvements in dietary consumption patterns. Businesses across the UAE will be granted sufficient time to prepare for the implementation of the new mechanism. Additional details will be announced in the coming period to support businesses in achieving full compliance with the updated policy.
