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Romania To Introduce Fat Tax On March 1

Monday, February 22, 2010

Romania is to forge ahead with its tax on obesity - to enter into force on March 1, 2010 - despite heated debate over the issue. The tax - still subject to political debate - is expected to be more comprehensive than many other similar taxes proposed in other countries.

The so-called ‘fat tax’ was first proposed by the Health Ministry in response to growing obesity. Obesity rates have doubled in adults in two years, and childhood obesity has increased two-fold in the last decade. 25% of Romanians are clinically obese, and half are considered overweight.

Details have not been firmed up by the government, as they are still subject to debate, but it is understood that the levy, combined with recent increased in food prices, could increase the price paid for unhealthy foods by as much as 30%, generating around EUR1bn in extra revenues annually.

The tax is to be levied on the content of the food, and not on certain food types - as proposed in similar levies elsewhere. Romania’s ‘fat tax’ is to be levied based on the fat, additives and salt content of food on a progressive basis, with tax applied at the point of sale, and remitted to the government by the seller.

Those in opposition to the levy argue that the tax could have an adverse impact. They argue that less affluent Romanians are more likely to purchase fatty foods as they are less expensive than healthy options.

There are also doubts about its efficacy, and its effect on government revenues. As is often the case with hikes in ‘sin taxes’ the authorities run the risk of the emergence of a more prominent grey market, making junk food ‘forbidden fruits,’ and more profitable for those that would illegally trade them free of the tax.

Those opposed to the levy have called on the government to make it less punitive, and instead reeducate Romanians on nutrition.

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Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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