UK to raise corporation tax to pay for COVID crisis

UK to raise corporation tax to pay for COVID crisis
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Updated 03 March 2021

UK to raise corporation tax to pay for COVID crisis

UK to raise corporation tax to pay for COVID crisis
  • Sunak said he would encourage businesses to invest their cash reserves with a so-called “super deduction”
  • The UK introduced corporation tax at a rate of 40 percent in 1965. It rose to a high of 52 percent in the 1970s.

LONDON: Britain will raise corporation tax to 25 percent from 19 percent from 2023 to help pay for the cost of the COVID crisis but tempered the tax rise with a “super deduction” to spur investment, finance minister Rishi Sunak said on Wednesday.

“The government is providing businesses with over £100 billion ($139.2 billion) of support to get through this pandemic so it is fair and necessary to ask them to contribute to our recovery,” Sunak told parliament.

“Even after this change, the United Kingdom will still have the lowest corporation tax rate in the G7,” Sunak said.

Sunak said he would encourage businesses to invest their cash reserves with a so-called “super deduction” to reduce their tax bill by 130 percent of the cost.

He said that under existing rules, a construction firm buying £10 million of new equipment could reduce their taxable income in the year they invest by £2.6 million but with the "super deduction" they could reduce it by £13 million.

“We’ve never tried this before in our country,” Sunak said.

Sunak quoted the Office for Budget Responsibility as saying it would boost investment by 10 percent; around £20 billion higher per year.

“It makes our tax regime for business investment truly world-leading, lifting us from 30th in the OECD, to 1st,” he said.

“This will be the biggest business tax cut in modern British history.”

The UK introduced corporation tax at a rate of 40 percent in 1965. It rose to a high of 52 percent in the 1970s.

In the 1980s, the main rate was cut to 35 percent under Margaret Thatcher, then during the 1990s from 35 percent to 30 percent and eventually to 20 percent.

The rate was cut to 19 percent from 2017 and was supposed to be reduced further to 18 percent and then 17 percent but has been held at 19 percent.

Sunak said small businesses with profits of less than £50,000 a year would be charged only 19 percent - so around 70 percent of businesses would be unaffected.

He also said the government would taper in the tax on profits above £50,000 so that only businesses with profits of £250,000 or more - around 10 percent of companies - would be taxed at the full 25 percent rate.


Mastercard, Coinbase partner to make NFTs more accessible

Mastercard, Coinbase partner to make NFTs more accessible
Updated 12 sec ago

Mastercard, Coinbase partner to make NFTs more accessible

Mastercard, Coinbase partner to make NFTs more accessible

RIYADH: Payments giant Mastercard has partnered with cryptocurrency exchange Coinbase to make non-fungible tokens more accessible.

Mastercards can be used to make purchases on Coinbase’s upcoming NFT marketplace.

“We’re excited to announce today that we’re partnering with Coinbase to let people use their Mastercard cards to make purchases on Coinbase’s upcoming NFT marketplace,” Mastercard said in a statement.

“Getting more people involved safely and securely is perhaps the best way to help the NFT market thrive.”

Mastercard also sees greater potential for core NFT technology to go beyond art and collectibles in many other areas.

Coinbase announced in October last year that it is launching an NFT marketplace.

“Coinbase NFT, as a peer-to-peer marketplace that will make minting, purchasing, showcasing and discovering NFTs easier than ever,” Coinbase said.

“We’re making NFTs more accessible by building user-friendly interfaces that put the complexity behind the scenes. We’re adding social features that open new avenues for conversation and discovery. And we’re going to grow the creator community exponentially, a win for artists and for fans.” 


Saudi Wafrah appoints Khaled Saleh Al Amoudi as CEO

Saudi Wafrah appoints Khaled Saleh Al Amoudi as CEO
Updated 6 min 28 sec ago

Saudi Wafrah appoints Khaled Saleh Al Amoudi as CEO

Saudi Wafrah appoints Khaled Saleh Al Amoudi as CEO

RIYADH: Saudi food firm Wafrah for Industry and Developments has appointed Khaled Saleh Al Amoudi as CEO on Thursday, according to a bourse statement. 

The decision follows recommendation from the Remuneration and Nomination Committee.

With a M.Sc.in Financial Management, Al Amoudi currently holds the chief financial officer position at the firm, with more than 20 years of accumulated experience as CFO and in the governmental and bank sectors.


Tadawul approves $755m government debt listing

Tadawul approves $755m government debt listing
Updated 13 min 24 sec ago

Tadawul approves $755m government debt listing

Tadawul approves $755m government debt listing

RIYADH: Saudi stock exchange Tadawul approved listing of SR2.83 billion ($755 million) worth of government debt instruments, submitted by the Ministry of Finance, according to a bourse filing.

The first issuance dated January 8, amounts to SR1.25 billion, Tadawul said in a statement.

The second issuance dated January 12, is valued at SR1.59 billion.


Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales
Updated 16 min 43 sec ago

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

RIYADH: Saudia Dairy and Foodstuff Co., or SADAFCO, reported a 28.6 percent decline in profit during the nine months ending Dec. 31, 2021. 

Profits dropped to SR146 million ($38.9million), compared to SR205 million in the corresponding period a year earlier, the company announced in a bourse statement.

SADAFCO attributed the lower profit figures to lower sales volumes driven by the pandemic, an increase from 5 percent to 15 percent in VAT, and higher material and logistics costs.

The financial statements of the company indicated a healthy cash flow, with a strong cash position of SR679 million.

SADACFO’s share price edged down by 0.12 percent in today’s session to close at SR167.

Earlier, the company’s board recommended cash dividends at SR3 per share for the first half of the fiscal year ended Mar. 31, 2022.

Jeddah-based SADAFCO operates sales and distribution depots in 24 locations across Saudi Arabia, Bahrain, Qatar, Jordan, and Kuwait. Its products are also exported to several countries in the MENA region.

 


South Korea’s Kakao Pay loses its three most senior executives

South Korea’s Kakao Pay loses its three most senior executives
Updated 22 min 21 sec ago

South Korea’s Kakao Pay loses its three most senior executives

South Korea’s Kakao Pay loses its three most senior executives

South Korean fintech firm Kakao Pay Corp. saw three of its leading executives quit on Thursday amid shareholder rebellion.

According to Bloomberg, the company's CEO, chief financial officer and chief business officer all resigned.

This comes as the CEO, along with other executives, faced criticism from by shareholders for selling down some of their stakes in the stock market after its November debut.

This dragged down investor sentiment in the process, slashing a total of $25 billion off the market value of the firm and its affiliates.

While the resignation of chief executive officer Alex Ryu was anticipated, that of chief financial officer Kijoo Chang and chief business officer Jin Lee came as a surprise.

The IT giant’s listed vehicles saw a 6.3 percent jump — its largest in three weeks — in shares on Thursday, after severe losses experienced a day earlier.