Legislation
« Previous EntriesOECD petrol tax analysis puts Turkey in top spot.
Wednesday, August 26th, 2009The OECD governments that levy the highest tax on petrol
NOT only oil companies profit when you fill up your car with petrol. Many governments ensure that they take a fat wad of cash from motorists in the form of petrol tax (among the many other methods of relieving drivers of money). Since 1998 Turkish motorists have suffered the most as taxes have risen from next to nothing to over 70 euro cents a litre. Hungarians too have gone from paying no tax to shelling out over 40 cents a litre. For some countries, change is the result of shifts in the value of currencies. At the bottom of the pile come car-loving Americans. They still pay just a small fraction of the price of a full tank to the government.
SOURCE: www.economist.com
Christopher Macgowan
CENSORSHIP IS ALIVE AND WELL IN THE UK!
Friday, June 19th, 2009So a sea of blacked out detail awaits anyone looking at the now over-hyped release of MPs’ expenses. Such is the censorship that it would be hard to pin point the sort of revelations and accusations exposed by The Daily Telegraph. This is the mark of a House of Commons still not accepting the world has changed – and all on the altar of data protection as well!
In my business career – particularly at the moment – I have implemented a lot of change and change management. I know first hand the most difficult organisations to change are the ones who seem to be signed up for change but secretly do not think it will happen – and indeed privately resist it.
I think we are all seeing that with the House of Commons expenses scandal.
At the rate we are going General Motors will be up and running and re-engineered before the House of Commons.
Christopher Macgowan
Why knock the UK motor industry scrappage scheme?
Tuesday, June 16th, 2009I am becoming increasingly irritated by the amount of criticism of the scrappage scheme – simply because I believe the main detractors are missing the main point.
Three themes constantly emerge. Firstly it only benefits small foreign made cars. Secondly it is only really £1000 and a drug which when we come off it will cause the market to go cold turkey. Thirdly a consumer might get a better deal without the scheme.
Isn’t it wonderful how some commentators can only look at the worst possible aspect of any initiative in order to spread more gloom and doom? There is a grain of truth in all three arguments but those who like to promote those very arguments miss one enormous and central point.
Quite apart from 60,000 orders having been taken to date which will feed through into registrations quite quickly the main benefit of the scheme is that traffic through dealer showrooms is up; consumers are talking positively about buying cars and the industry has received a much needed psychological shot in the arm.
Don’t knock it – encourage it!!
Christopher Macgowan
WHEN IS A CAKE A BISCUIT? YOU’VE ALWAYS WANTED TO KNOW…..
Thursday, February 12th, 2009M&S has finally won its 13-year battle over the VAT status of the chocolate-covered teacake.
In winning what has become an epic struggle, if a rather obscure one, the retailer will probably feel it has gotten its just desserts. In 1995 M&S claimed a repayment of £3.5m for VAT it had paid between 1973 and 1994 on sales of the teacakes – which the taxman had wrongly classified as biscuits. The Commissioners of Customs and Excise then recognised the mistake, but refused to refund 90% of the tax, saying the retailer would profit unduly as customers had already paid VAT on the products. Now three Law Lords have confirmed that M&S is entitled to a full refund, upholding last year’s decision by the European Court of Justice (ECJ).
Anyone who’s ever entered the great Jaffa Cake debate will know that the world of biscuits and cakes is one that, once unwrapped, contains a whole host of potentially troublesome complications. The general argument as to what constitutes which is usually won by pointing out that cakes go hard when stale, while biscuits go soft (thus confirming the Jaffa is indeed a cake, even if it does offer the consumer the convenience and form-factor of a biscuit).
Indeed, McVities won a famous victory more than 10 years ago when it successfully argued that a Jaffa Cake was indeed a cake, rather than a biscuit, thus making it exempt from VAT. Under UK tax rules, manufacturers don’t pay VAT on traditional bakery products like bread, cakes and flapjacks, but do on cereal bars, shortbread and partly-coated or wholly-coated biscuits. No tax is paid on bourbons, or other biscuits with a filling between two halves, as opposed an outer coating. The confusion over the teacake comes from the fact it is both covered and contains a biscuit filling. Have you had enough yet? Or would you like another slice of recession talk?
In our humble opinion, the teacake is definitely far less of a cake than your classic chocolate or Eccles numbers. That said, you’d have to be soft in the head to try to claim the teacake as a biscuit. It winds up as some kind of bis-cake hybrid. Either way, the M&S board can sit back and wash away 13 years of fierce corporate struggle with a nice cuppa, and a piece of cake.
From Management Today.
http://www.managementtoday.co.uk/News/MostRead/879201/m-s-tax-victory-takes-biscuit
Christopher Macgowan
UK INDEPENDENT GARAGES – SIGN UP TO THE CODE.
Wednesday, February 11th, 2009Independent garages urged to embrace industry code of practice to avoid losing their independence
The automotive service and repair sector currently faces a number of serious issues – none more urgent than the threat of legislation in the form of licensing. By subscribing to the low-cost, consumer-focussed Motor Industry Code of Practice for Service and Repair, any garage can ensure it is in the best position to demonstrate a commitment to open and honest business to its customers and to government.“The Motor Industry Code of Practice for Service and Repair is unique because it is a low-cost scheme which benefits customers and businesses alike,” said Chris Mason, director of Motor Codes Ltd. “While the franchised operations have been quick to see the advantages of committing to the Code, it is vital that independent outlets also embrace it to demonstrate to everyone that as a sector, we are capable of managing our own affairs.”
As a cross-industry Code, it received the support of organisations including the Retail Motor Industry Federation and Independent Garage Association who are urging members of their bodies to subscribe. To help them spread the message, Motor Codes Ltd has created a one page summary of what the Code means and why independent garages need seriously to consider being part of this, to satisfy consumer bodies and government that the garage trade is honest and, where required, has cleaned up its act. The information sheet will also appear in some trade journals and industry magazines.
Any UK garage can sign up to the voluntary Code, which is currently progressing through the Office of Fair Trading (OFT) Consumer Codes Approval Scheme (CCAS) and has completed the first stage of the OFT’s code approval process.
Christopher Macgowan
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