Wednesday, April 3, 2013

10 Types of Taxes Which You Have Never Heard Of

All of us pay tax in one form or the other, be it income tax or sales tax. Paying tax has become inseparable part of everyone’s life. Benjamin Franklin rightly said “nothing is certain but death and taxes” and it is true even to this day. Well! Income tax, property tax and commercial taxes are something that all of us are familiar with.


Here are few bizarre tax forms that have been charged in the past, present and the future:
1. Forced Cigarette Smoking
Almost all the countries levy some percentage of tax on cigarettes. China is the only country which is increasing its revenue from cigarette tax by literally forcing people to buy and smoke Cigarette.

In fact, the local government of China has ordered their citizens to smoke about a quarter of a million packs of cigarettes, so that it can improve their economy if any financial crises occur. “Even local schools have been issued with a smoking quota for teachers”, and one village in China was even “ordered to purchase 400 cartons of cigarettes a year for its officials” as reported by Billshrink. 

2. Tattoo Tax

We pay tax for everything that we buy, directly or indirectly. From 2005, 6 percent tax has been levied on tattoo and body piercing by the government of Arkansas, U.S. So, the next time you are going for getting a tattoo done, think twice. Tattoo tax which is included under the turbo tax, has been considered among America's Most Bizarre Taxes.

This also includes Electrolysis treatments that you get from your salons.

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3. Blueberry Tax

Would you believe, if someone says, there is tax for growing, purchasing, and selling of blueberries? Sounds really unbelievable, but this is true.

Maine, a place in Canada produces 75 million pounds of blueberries every year. Well, they do so in order to beat the U.S. in the cultivation and production of blueberries.

The next time you are visiting Maine in Canada, don’t buy Blueberries. If at all you are willing to buy be ready to pay 25 percent more, which goes towards tax payments.

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4. Fur Coat Tax
Winter is cold and everyone knows this! And in order to safeguard winter cold, people buy and wear woolen clothes. But in Minnesota, keeping the winter away costs an extra price to the people.

Purchasing a sweater from Minnesota costs an extra 6.5 percent tax to the people. This tax includes the profit to the shop keepers and the shipping and handling charges.

Next time, when it’s winter in Minnesota, one should think of getting new woolen clothes for them!

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5. Vending Machine Fruit Tax

Fruits have become the most wonderful gift to mankind. You would find very few people who say no to fruits, especially people of California who have adapted fresh fruits as their part of healthy diet.

Well, this might be the reason; California has levied tax of about 33 percent on fresh fruits that are brought from the vending machine which has added to be America’s top 10 unusual taxes.

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6. Bagel Tax

Here is a tax levied by New York’s state’s Department of Taxation and Finance for the people of New York, as their morning breakfast is going to charge 8 cents of tax.

A bagel bought with topping and you want to eat it in the store where you purchased will get you into paying extra. To keep yourselves away from paying extra tax of 8 cents, better take it home, put some extra butter on it, slice it and enjoy.

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7. Pet Tax

For the people who stay in Durham County, North Carolina, it’s time to consider their pets as their personal property. Having a pet costs an extra amount of cash for the pet lovers in Durham County.

A $10 tax has been charged for the pets that are sterilized or neutered and $75 for pets that are not sterilized. This is applicable to the owners of cats and dogs which are 4 months and much older.

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8. Bribery Tax

In today’s world where bribery is a condemned act, Germany is a country where bribery is considered to be legal in the private businesses.

If you are involved in any kind of bribery activities, you have to mention every details of the bribing act. This includes the name of the person, you had bribed or the person who has bribed you. Along with the details, you have to pay an extra amount of tax which gets included in the corporate income tax. But in recent years this practice is eliminated.

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9. Alien Tax

In 1885, Chinese immigrants in Canada were levied with tax until 1923. These people were asked to report about their income level from work or from any other means, monthly bank interests, and dividends etc. It was not because people were not having the feeling of togetherness between them, but because Chinese Immigration Act does not permit Chinese going to Canada.

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10. “Culturally British” Games Tax

Most country hardly feels that they need a tax break on their cultural games. Britain is that one country which announced that the government will collect the taxes on their cultural games.

Any video game that has relation with the British roots will be considered in this criterion. Whether the central character of the game is a British or the narrator of the game is a British, or the game has any relation with Britain, the game falls under this category.