Latest news with #fiscalPolicy
Yahoo
09-07-2025
- Business
- Yahoo
Market Girds for Pivotal 20-Year Japan Bond Sale as Yields Rise
(Bloomberg) -- An auction of 20-year Japanese government bonds Thursday will beam the searchlight back on rising yields as a looming election heightens concerns about fiscal expansion. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On The sale is just one of several in major debt markets this week as increasing yields on some longer maturities show how investors are worried about widening budget deficits. The 30-year Japanese bond yield breached the key 3% level on Tuesday again, in sight of the peak reached in May, and the 20-year yield is near the highest in about 25 years. 'It is unlikely that major Japanese institutional investors, including banks and life insurers, will actively bid' in the auction, as they await the results of the July 20 election and their impact on fiscal policy, said Ryutaro Kimura, a senior fixed-income strategist at AXA Investment Managers Japan Ltd. in Tokyo. Speculation of less demand comes amid risks to the budget with the ruling Liberal Democratic Party and its coalition partner seeking to entice voters with cash handouts while opposition lawmakers push for lower taxes. In addition, uncertainty over tariffs, with Japan scrambling for a deal after US President Donald Trump announced they will be increased to 25% from Aug. 1, may deepen the risk of the economy entering a technical recession. The auction results are due at 12:35 p.m. Tokyo time, and traders will be on the watch for the bid-to-cover ratio, which measures the level of interest from investors. Another important metric is the tail, which measures the gap between the average and lowest-accepted prices. A wider reading tends to indicate weaker demand. Last month's 20-year bond sale showed some wariness in the market, even after the government adjusted its borrowing plan to calm surging yields. Japan will trim the volume of 20-, 30- and 40-year bonds sold in regular auctions by a combined ¥3.2 trillion ($22 billion) through the end of March 2026. The changes came into effect from July, and though this helped some recent sales such as the 30-year last week, yields have still pushed higher. 'If the 20-year auction came out weak, in this market condition it would affect the 10-year sector in a negative way,' said Shoki Omori, chief strategist at Mizuho Securities Co. in Tokyo, referring to the most liquid Japanese government bond. Sovereign bond yields surged globally earlier this week, with the 30-year Treasury yield heading back toward 5% as some of the world's biggest banks sent fresh warnings over fiscal spending concerns. US Treasuries rallied on Wednesday after an auction of 10-year notes drew strong demand, easing concerns that investors will balk at financing swelling US deficits. In Japan, some major life insurers continue to be skeptical. Meiji Yasuda Life Insurance Co. said it plans to avoid actively investing in Japanese super-long-term government bonds for the next year or two as interest rates may rise and supply pressures build. This is right when the central bank - the dominant holder - is trying to gradually back out of the market. --With assistance from Naoto Hosoda. Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
07-07-2025
- Business
- Zawya
Oman's income tax decision draws support and scrutiny
Starting 2028, Oman will introduce a 5% personal income tax on high-income earners, marking a first in fiscal policy not just the in sultanate but the GCC. The decision is part of broader efforts to diversify revenue sources and reduce dependence on oil. The move has sparked a discussion among citizens and residents alike. Here is what Muscat Daily readers said – Fatma al Harthy, Businesswoman I think it's a fair step. High-income earners can contribute more to the country's growth. As long as the system is transparent and benefits are visible – like better healthcare, education and infrastructure – I support it. Oman is evolving, and we must be financially sustainable in the long run. Ahmed al Saifi, Private sector employee Introducing a 5% income tax on the wealthy is a balanced move. Many countries do this already. It won't impact daily life much, but it can help reduce dependence on oil. I hope the revenue is reinvested in youth programmes, innovation and job creation. Salma al Balushi, Homemaker It's the right time to prepare for the future. With oil prices being unpredictable, we need steady income sources. This tax seems reasonable and limited to those earning more. It shouldn't affect average citizens. What matters is ensuring accountability in how this tax is used. Anish Menon, IT professional As a long-time resident, I respect Oman's strategy. A 5% tax on high earners is modest compared to global standards. It could help build a better economy. It will be also good to diversify the economy. I welcome the move. Yaqoob al Rawahi, Businessman It has its pros and cons. One of the main downsides is that high-income earners will start looking for other competitive countries – either with lower taxes or no taxes at all. The upside, however, is when taxes are used to support and develop sectors like startups and small businesses. But speaking from my perspective in Oman, I see it more as a negative because so far, the allocated funds and resources for supporting startups are extremely limited and discouraging. This will only push more investors to move towards competitor countries with fewer or no taxes. Aisha al Hafeez, Business development associate As limited as this target demographic of high-income earners currently is, this system still has some potential of working in our favour, especially with the rise in high-income expatriates arriving in Oman. I recognise the outcome it could have on increasing revenue without pressuring Omani residents to feel burdened by this tax rate. Lakshmi Joshi, Bank professional Since the tax only affects individuals who consistently earn an annual salary that exceeds approximately RO42,000, I think it presents a unique solution to strengthen our country's overall GDP. This could also make Oman more competitive given the rising trend of international investors moving into the country. Tarun Joshi, Businessman I understand the logic. The cost of maintaining services and infrastructure is rising. High-income earners can afford to contribute a bit more. It's essential though that the tax system is transparent, and businesses like ours are supported by the government and private sectors. Vijay Dixit, Sales officer I personally believe that the upcoming income tax could present the Omani government an opportunity to test out this new system among high-earners within the country while also giving our government additional revenue, thus minimising our dependence on oil revenue. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
The Guardian
06-07-2025
- Business
- The Guardian
Keir Starmer should be bold and consider a wealth tax, Neil Kinnock says
Keir Starmer's government is suffering from a 'lack of narrative' about what it is trying to achieve and should be more fiscally bold and consider a tax on wealth, Neil Kinnock has said. The former Labour leader said too many of the government's achievements were being overshadowed. A year after a landslide election win, the party is struggling in the polls and has U-turned on policies including cuts to winter fuel payments and welfare. 'It's not a mess, but what has gone wrong is really the lack of a narrative, a story of the objectives of the government and where they're working towards it and how they're working towards it,' Kinnock said. The government had implemented 'a series of really commendable and absolutely essential policies', added Kinnock, who led Labour into two elections. But these policies, he said, had been obscured by controversies over things such winter fuel and welfare, 'all those negative things that really are heartily disliked across the Labour movement and more widely'. 'And that means that, apart from the distaste for undertaking those policies, the cloud hangs over the accomplishments of the government, which are substantial and will become greater.' Kinnock was scathing about the move by Jeremy Corbyn and other former Labour MPs to set up their own leftwing party. 'I understand the difficulty of thinking up a name, and in a comradely way, I'd suggest one: It would be the Farage Assistance Group.' Amid increasing speculation that Rachel Reeves, the chancellor, will have to raise taxes at the autumn budget, Kinnock said that while Labour's election focus on fiscal discipline was vital for restoring credibility, 'it did mean that they depressed expectations and limited themselves by saying they were going to rigidly stick to fiscal rules'. Kinnock said there was a risk of the government being 'bogged down by their own imposed limitations' and he believed a number of cabinet ministers would want more fiscal boldness. One option, he said, would be a form of wealth tax, which would be useful not just to raise revenue but as 'a gesture, or a substantial gesture in the direction of equity fairness would make a big difference' in a time when 'earned incomes have stagnated in real terms, while asset values have zoomed'. He said such a policy should target wealth above £6m or £7m, where a 2% tax would raise £10bn or £11bn a year. 'That's not going to pay all the bills, but it does two things. One is to secure resources, which is very important. But the second thing it does is to say to the country: we are the government of equity, and this is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top, unscathed all the time, while everybody else is paying more for gutted services.'
Daily Mail
04-07-2025
- Business
- Daily Mail
Raising a big tax is Rachel Reeves' only way of balancing the books to fill fiscal black hole, experts warn
Britain's hard-pressed middle earners face a painful new tax squeeze as the Chancellor scrambles to fill fiscal black hole, experts warned yesterday. Rachel Reeves is on course to break her election promise not to put up taxes including income tax, National Insurance and VAT, Institute of Fiscal Studies director Paul Johnson said. It came as a damning new poll by YouGov showed that three-quarters of Britons believe Ms Reeves will smash Labour 's vow by putting up one of the UK's main taxes. The Chancellor could be facing a black hole of up to £40 billion in the October Budget after Labour was forced into a humiliating U-turn on welfare reform amid economic downgrades. Ms Reeves last night refused to rule out tax rises in the autumn, saying it would be 'irresponsible for a Chancellor to do that'. And, she told the Guardian, despite her tears in the Commons this week, she never entertained the idea of resigning, adding: 'I didn't work that hard to then quit.' The Chancellor has also refused to rule out a raid on pensions amid growing fears that she will target the retirement pots of millions of workers in the autumn. Mr Johnson told the BBC: 'If you are looking at [a] £30 billion [black hole], which is quite plausible, I can't see a way you raise that kind of money without hitting people on middle incomes as they did with the National Insurance last year.' He added that Ms Reeves will have to break her election vow not to put up the main taxes. 'If you are looking at big money it has to be something in income tax, National Insurance and VAT,' he said. 'To raise that kind of money, you are looking at people on middle kinds of income.' Months of speculation over pension tax changes ahead of the Budget could prove highly damaging if – as was the case last year – it leads to a rush of savers withdrawing cash from their retirement pots early to avoid being hit. Mr Johnson said: 'There was all sorts of speculation before the last Budget, in fact tens of thousands of people changed their pension arrangements for fear that there will be a change which there then wasn't. 'We've heard nothing from the Government about what its view is about how pensions should be taxed.' He said changing pension tax relief would 'hit a very large number of teachers and nurses and other people in the public sector who the Government might not want to hurt.' Two former pensions ministers – Sir Steve Webb and Baroness Altmann – previously told the Mail that Ms Reeves should rule out a raid on retirement savings. The Office for Budget Responsibility (OBR) halved its growth forecast for this year in March. This week the watchdog hinted at a further likely downgrade after admitting that previous forecasts had proved too optimistic. Economists have warned that a 0.2 per cent downgrade in the OBR's forecasts would leave the Chancellor with an £18 billion hole to fill. The problem has been made worse by costly U-turns on welfare. Keir Starmer's climbdown on the winter fuel allowance will cost £1.5 billion. The retreat over cuts to the personal independence payment (PIP) could cost as much as £6 billion, and Labour MPs are pushing for the abolition of the two-child benefit cap.
Globe and Mail
04-07-2025
- Business
- Globe and Mail
OPEC+ set to make another accelerated oil output hike on Saturday, sources say
Report on Business Meet Nojoud Al Mallees As an economics reporter, Nojoud writes about how fiscal and economic decisions on Parliament Hill affect businesses, Canadians and the economy at large.
