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tax

World

Iran war sparks EU proposal to reduce tax on electricity and encourage green transition

by Chief Editor
written by Chief Editor

EU Plans Energy Tax Overhaul Amidst Iran Crisis: A Shift Towards Electrification?

European Union policymakers are preparing a significant overhaul of energy taxation, aiming to mitigate the impact of the escalating Iran crisis on energy prices and accelerate the transition to cleaner energy sources. A draft proposal, slated for release on April 22nd, focuses on reducing taxes on electricity while potentially increasing levies on fossil fuels.

From Instagram — related to European, Energy

The Rising Cost of Energy and the Iran Conflict

The conflict in Iran has already sent shockwaves through global energy markets. European natural gas prices have surged by over 70% since the start of the conflict, exacerbated by the effective closure of the Strait of Hormuz – a critical waterway for global oil transport, handling around 20% of the world’s oil flow. Oil prices have also climbed above $100 a barrel, impacting electricity costs across Europe.

Currently, electricity prices in the EU are significantly higher than gas prices – roughly two and a half times more per unit as of early 2025. Around 28% of the average European electricity bill is comprised of taxes and levies. This disparity, while historically linked to funding renewable energy and keeping fossil fuels affordable, is now seen as a barrier to electrification.

Rebalancing the Tax System: Incentivizing Green Energy

The European Commission argues that lowering electricity taxes is crucial for encouraging a shift away from fossil fuels. Existing EU taxation rules haven’t been updated since 2003, and previous attempts at reform have stalled. The upcoming proposal seeks to legally mandate lower taxes on electricity compared to oil and gas.

Rebalancing the Tax System: Incentivizing Green Energy
European Energy Commission

To offset potential revenue losses from reduced electricity taxes, the Commission is considering a windfall tax on the surging profits of fossil fuel companies – a measure previously implemented during the energy crisis triggered by Russia’s invasion of Ukraine. This approach aligns with the EU’s Affordable Energy Action Plan, which aims to promote electrification, expand renewable energy sources, and improve grid infrastructure.

The Fossil Fuel Dependency Dilemma

European Commission President Ursula von der Leyen has emphasized the high cost of the EU’s reliance on fossil fuels, stating, “We are paying a exceptionally high price for our over-dependency on fossil fuels.” The proposed tax changes are intended to address this dependency and shield member states from future energy shocks.

What we know about proposals to end Iran war

A Binding Electrification Target on the Horizon

Beyond tax adjustments, the European Commission is reportedly planning to propose a binding target for electrification before the summer. This would further incentivize the adoption of electric technologies in sectors like heating and transportation, reducing reliance on fossil fuels.

What Does This Mean for Consumers?

Lower electricity taxes could translate to lower energy bills for households and businesses, making electric heating and transportation more affordable. This could accelerate the adoption of electric vehicles and heat pumps, contributing to the EU’s climate goals. However, the impact on consumers will also depend on the implementation of any windfall taxes on fossil fuel companies and how those revenues are redistributed.

What Does This Mean for Consumers?
Energy Strait Hormuz

FAQ

Q: When will these changes be implemented?
The draft proposal is due to be published on April 22nd. Implementation will depend on agreement from EU member states.

Q: Will gas prices go down if electricity taxes are lowered?
Lowering electricity taxes won’t directly impact gas prices, but it could reduce demand for gas as more consumers switch to electricity for heating and transportation.

Q: What is a windfall tax?
A windfall tax is a tax levied on companies that have experienced unexpectedly large profits, often due to external factors like geopolitical events.

Q: How will the EU make up for lost tax revenue?
The EU is considering a windfall tax on fossil fuel profits to offset potential revenue losses from reduced electricity taxes.

Did you understand? The Strait of Hormuz is a strategically vital chokepoint for global oil supplies, with approximately 20% of the world’s oil passing through it daily.

Pro Tip: Explore government incentives and subsidies for electric vehicles and heat pumps in your region to maximize savings and contribute to a greener future.

Stay informed about the evolving energy landscape and its impact on your daily life. Read more energy news on Euronews.

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Business

Victoria’s short-stay levy may be contributing to drop in holiday rental growth, data suggests

by Chief Editor
written by Chief Editor

Victoria’s Short-Stay Levy: A Year Later, Is the Tide Turning?

More than a year after its introduction, Victoria’s 7.5% short-stay levy is showing early signs of impacting the state’s rental market. While the government initially aimed to generate $75 million in its first year to fund social and affordable housing, the levy actually exceeded expectations, bringing in $85.8 million in 2025, according to the State Revenue Office.

Slowing Growth and Shifting Market Dynamics

Data from AirDNA reveals a significant slowdown in the growth of short-stay listings across Victoria following the levy’s implementation on January 1, 2025. Between January 2022 and January 2025, listings experienced steady year-on-year growth. In January 2023, there were approximately 37,097 listings, up from 31,410 the previous year. This growth continued in 2024, reaching 45,178 – a nearly 22% increase. However, the introduction of the levy in 2025 saw a dramatic shift, with growth slowing to just 2.6% (46,342 listings). By January 2026, listings had even declined by approximately 0.5% compared to the previous year.

Slowing Growth and Shifting Market Dynamics
Victoria Levy Slowing Growth and Shifting Market Dynamics Data

Is the Levy Driving Sales?

Some real estate agents believe the levy is prompting property owners to sell their short-term rental investments. Trish Goodlet, director of Decent Life Real Estate in Apollo Bay, has observed an increase in homes previously used for short-stay accommodation being listed for sale. “We’ve definitely got a lot of listings that were profitable successful [short-stay] investments for people and then with the levies some have listed those for sale because they’re not performing as well as they hoped,” she said.

From Instagram — related to Victoria, Levy

Did you understand? The Victorian Government has stated that every dollar raised from the short-stay levy will be directed towards providing social housing for Victorians in need.

Beyond the Levy: Other Contributing Factors

However, attributing the slowdown solely to the levy is complex. Experts suggest that rising interest rates and broader economic conditions are also playing a role. Michael Fotheringham, managing director of the Australian Housing and Urban Research Institute, noted that increased caution among investors, driven by the cost of living, is likely contributing to the trend. He also pointed out that the post-COVID boom in short-term rentals was likely unsustainable, and the current stabilization represents a return to more normal market conditions.

Industry Response and Concerns

The introduction of the levy was met with criticism from the short-stay accommodation sector. Airbnb previously stated that the 7.5% rate was “too high” and would unfairly benefit hotels. Concerns were also raised about the potential for decreased regional tourism if the levy was passed on to consumers.

Episode 41 | Victoria’s short-stay levy: what it means for property owners | MRE Uncut

Stayz has maintained that while the sector should contribute to government revenue, the levy should be reasonable, uniformly applied, and administered by the state. Eacham Curry, senior director of government and corporate affairs at Stayz, emphasized the importance of a fair and consistent approach.

The Impact on Guests: Costs Passed On

Investment property owner Benny Harrap, who operates short-stay rentals in Wodonga, reported that the levy has not significantly impacted his business. He explained that the cost is typically passed on to guests through booking platforms. “The way it works within the platforms is they charge on top of all the fees,” he said. “So I charge a fee, there might be a cleaning fee on the platform and then the platform charges a fee and they’ll put an additional 7.5 per cent on top of that, which gets charged to the customer.”

The Impact on Guests: Costs Passed On
Victoria Levy Victorian

Looking Ahead: What Does the Future Hold?

The long-term effects of the short-stay levy remain to be seen. While the initial data suggests a slowdown in listing growth, the market is influenced by a multitude of factors. The Victorian government maintains the levy is “working as intended,” but has not yet detailed specific projects funded by the revenue generated. Continued monitoring of listing numbers, occupancy rates, and revenue data will be crucial to understanding the levy’s true impact on Victoria’s short-stay accommodation market and its contribution to social and affordable housing.

Frequently Asked Questions

What is the short-stay levy in Victoria?
It’s a 7.5% tax on the total booking fee for short-stay accommodation in Victoria, applied from January 1, 2025.
Who pays the levy?
The levy is collected by booking platforms (like Airbnb and Stayz) or directly from hosts.
Where does the money from the levy go?
The revenue is intended to fund social and affordable housing initiatives in Victoria, with 25% invested in regional areas.
Does the levy apply to all properties?
The levy generally applies to residential properties rented for less than 28 days, excluding owner-occupied homes and some commercial premises.

Seek to learn more about property investment in Victoria? Explore our other articles or subscribe to our newsletter for the latest updates and insights.

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Health

Rachel Reeves gambling taxes blamed by Ladbrokes owner for £681million losses

by Chief Editor
written by Chief Editor

Ladbrokes Owner Entain Feels the Pinch of Fresh Gambling Taxes

Entain, the parent company of Ladbrokes and Coral, has reported a significant £681 million loss for 2025, a substantial increase from the £461 million loss reported the previous year. The primary driver behind this widening deficit is a £488 million impairment charge directly linked to the recently announced tax reforms spearheaded by Chancellor Rachel Reeves.

Tax Hikes: A Blow to the Gambling Industry

The new tax structure, set to seize effect in stages, includes a rise in the remote betting levy from 15% to 25% starting in April 2027. More immediately, online casino operators will face a dramatic increase in duties, with remote gaming duty jumping from 21% to 40% next month. These changes are expected to generate an estimated £1.1 billion for the Government by 2029-30.

Impact on Operators: Big Players vs. Smaller Competitors

Entain CEO Stella David has voiced strong concerns, stating the tax increases will likely damage the industry and “open the door” to black market operators. While Entain believes it can absorb these costs, David anticipates that smaller players may struggle to remain competitive, potentially leading to consolidation within the market. “There are many, many players in the UK that just don’t have the bandwidth to absorb those increases, so the big players like ourselves will take that share,” she stated.

Evoke, the owner of William Hill and 888 Holdings, exemplifies this pressure, having put itself up for sale in December following a profit warning issued after the Budget announcement.

Revenue Growth Amidst Tax Concerns

Despite the financial impact of the tax changes, Entain reported annual revenues of £5.26 billion, a 3% increase year-on-year. This growth is partially attributed to the positive performance of BetMGM, Entain’s joint venture with MGM Resorts International in the United States.

Adapting to the New Landscape

Entain is actively implementing strategies to mitigate the impact of the tax hikes. These include scaling back promotional offers, streamlining operations, and leveraging artificial intelligence to improve efficiency in areas like marketing and customer acquisition. The company now expects to offset roughly half of the additional tax burden from 2027, an improvement from earlier projections of mitigating only a quarter of the costs.

The Rise of the Black Market

A key concern raised by Entain and industry representatives is the potential growth of the unregulated black market. David warned, “The UK regulated market is going to shrink as the black market grows.” This shift could undermine the government’s efforts to protect consumers and generate revenue.

Investor Confidence and Future Outlook

Despite the losses, investors reacted positively to the results announcement, with Entain shares rising 6% during afternoon trading in London. Shore Capital maintained a “buy” rating on Entain shares, citing the company’s underlying growth prospects and the increasing value of its BetMGM stake.

Frequently Asked Questions

Q: What are the key changes to gambling taxes?
A: Remote gaming duty will rise to 40% from 21%, and online sports betting (excluding horse racing) will increase to 25% from 15%.

Q: When will these tax changes take effect?
A: The increase in remote gaming duty is effective next month, while the increase in the remote betting levy will take effect in April 2027.

Q: How is Entain responding to these changes?
A: Entain is reducing promotional spending, streamlining operations, and utilizing artificial intelligence to improve efficiency.

Q: What is the potential impact on smaller gambling operators?
A: Smaller operators may struggle to absorb the increased costs and could be forced to consolidate or exit the market.

Did you know? The Office for Budget Responsibility forecasts the tax levies could generate £1.1 billion in extra receipts by the end of the current parliament, though warns some revenue could be lost to unregulated operators.

Pro Tip: Keep an eye on Entain’s performance in the US market through BetMGM, as this is a key growth area for the company.

Explore more about the UK gambling industry and its evolving regulations. Share your thoughts in the comments below!

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News

Los Angeles, Bay Area voters will decide whether to hike already high sales taxes | Dan Walters | Dan-walters

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

California voters face a busy election year, with decisions looming on a new governor, state legislators, and a series of ballot measures. Simultaneously, local officials in Los Angeles County and the San Francisco Bay Area are seeking voter approval for increased sales tax rates, already among the highest in the nation.

Tax Increases on the Ballot

Los Angeles County officials are asking voters in the June primary to add a half percentage point to sales tax rates, which already exceed 10% in many cities. This increase is intended to offset a projected $2.4 billion reduction in federal healthcare funding over the next three years, according to Los Angeles County Supervisor Holly Mitchell.

In the Bay Area, voters in four counties will consider a half percentage point increase in November, while San Francisco voters will be asked to approve a full percentage point increase. These proposed taxes aim to address operating deficits within the Bay Area Rapid Transit (BART) system and local bus and trolley services.

Did You Know? California consumers spend approximately one trillion dollars annually on taxable goods.

Erosion of Tax Limitations

These proposed tax hikes continue a trend of circumventing a state law that limits local add-on taxes to 2 percentage points above the statewide rate of 7.25%. Local officials routinely seek waivers from the Legislature to exceed this cap, and those waivers are typically granted.

Currently, California’s average sales tax rate, including local overrides, is 8.99%, making it the seventh highest in the country. Some cities in Los Angeles County already have rates as high as 11.25%.

Controversy and Concerns

The proposed tax increases are not without opposition. The California Contract Cities Association, representing 73 cities in Los Angeles County, has voiced concerns that a county-wide half percentage point increase could hinder cities’ ability to pursue their own tax measures. According to the association’s executive officer, Marcel Rodarte, cities have expressed that the county tax increase “makes it more difficult for cities” to raise their own rates.

Expert Insight: The repeated reliance on tax increases to address ongoing operational costs, particularly for transit systems, suggests a deeper issue of financial sustainability and a potential failure to adapt to changing circumstances.

The Bay Area transit tax measure likewise reignites debate over the financial practices of BART and other transit systems, with critics questioning whether they are adequately adjusting to decreased ridership following the COVID-19 pandemic.

Governor Gavin Newsom and the Legislature have provided the Bay Area transit systems with a $590 million loan, contingent upon voter approval of the tax increase, which is estimated to generate $980 million annually.

Some critics, like Bay Area News Group columnist Daniel Borenstein, suggest transit officials are using scare tactics by warning of service cuts if the tax measure fails, particularly given BART’s current low ridership levels despite maintaining a high level of service.

Frequently Asked Questions

What is being asked of voters in Los Angeles County?

Voters in Los Angeles County will decide in the June primary election whether to add a half percentage point to the sales tax rate to offset reductions in federal healthcare spending.

What is the current average sales tax rate in California?

The average sales tax rate in California is 8.99%, according to the Tax Foundation.

What is the state’s role in local tax increases?

Local officials routinely question the Legislature to grant waivers to exceed a state law limiting local add-on taxes, and these waivers are typically approved.

As California voters consider these significant tax proposals, the outcomes could reshape the financial landscape of the state’s largest urban centers and influence the future of public services.

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Business

Will my pension fund expose me to a higher bill if my spouse needs nursing home care? – The Irish Times

by Chief Editor
written by Chief Editor

Navigating the Fair Deal Scheme and Your Approved Retirement Fund (ARF)

The Irish Fair Deal scheme, officially known as the Nursing Home Support Scheme, aims to assist individuals with the costs of long-term nursing home care. However, understanding how it interacts with retirement funds, particularly Approved Retirement Funds (ARFs), can be complex. Recent queries highlight confusion around whether both the value of an ARF and the income drawn from it are factored into the financial assessment.

How the HSE Assesses Your Finances

The Health Service Executive (HSE) conducts a thorough financial assessment to determine your contribution towards nursing home fees. This assessment considers both your income and your assets. For a single person, 80% of assessable income and 7.5% of assets are applied annually towards the cost of care. For couples, where one partner requires nursing home care while the other remains at home, these percentages are halved to 40% and 3.75% respectively.

What Counts as Income and Assets?

Assessable income includes pensions, social welfare payments, dividends, bank interest, and rental income. Crucially, certain deductions are allowed, including income tax, Universal Social Charge (USC), health charges, mortgage interest, and local property tax. Support payments for children in full-time education are also excluded. Rental income from a family home while in nursing care is now exempt.

Assets encompass savings, stocks, bonds, and property, including the family home. However, the first €72,000 of assets is exempt for couples, and €36,000 for single individuals. The family home is included in the assessment, but only for a maximum of three years, capped at 22.5% of its value.

ARFs and the Fair Deal Scheme: Clearing Up the Confusion

The key takeaway regarding ARFs is that they are treated as a cash asset. The HSE values the fund at the time of application and applies the 7.5% (or 3.75% for couples) annual charge against that value. However, the income you draw down from the ARF is not double-counted. This means the amount you withdraw as income is not added on top of the asset valuation for contribution calculations.

This clarifies a common misconception – you won’t be losing 40% of your ARF income in addition to the asset-based contribution. The HSE acknowledges that the income drawdown is already reflected in the ARF’s overall value.

Can You Avoid Asset Assessment with an Annuity?

One way to avoid having your pension assessed as an asset is to convert your ARF into an annuity. However, this isn’t always financially advantageous, given recent concerns about annuity value. Income from an annuity, after tax and other exemptions, would then be subject to the 40% charge.

Will You Even Qualify for Fair Deal?

It’s important to note that you may not qualify for Fair Deal if your total assessable income and assets already cover the full cost of nursing home care. The scheme is designed to subsidize costs, so if your financial resources are sufficient, you won’t receive support.

Pro Tip

Request a financial review from the HSE no sooner than 12 months after a previous assessment. This ensures your contribution is based on the most current asset valuation and income levels.

Frequently Asked Questions

  • Is my ARF fully assessed? No, the first €36,000 (single) or €72,000 (couple) of your assets are exempt.
  • Is income from my ARF double-taxed? No, the income drawn down is not added on top of the ARF asset valuation.
  • How long is my home included in the assessment? Your home is included for a maximum of three years, capped at 22.5% of its value.
  • Can I appeal the HSE’s assessment? Yes, you have the right to appeal the financial assessment if you disagree with the outcome.

Please send your queries to Dominic Coyle, Q&amp. A, The Irish Times, 24-28 Tara Street, Dublin 2, or by email to [email protected] with a contact phone number. This column is a reader service and is not intended to replace professional advice.

Explore further: Read more about the Fair Deal scheme on the HSE website.

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Sport

Labour’s VAT raid ‘dismantling decades of careful work’ as private schools and parents lose court appeal

by Chief Editor
written by Chief Editor

Private School VAT Ruling: A Blow to Independent Education and What It Means for Families

Families seeking private education have suffered a significant legal defeat as the Court of Appeal upheld the Labour government’s policy of applying a 20% VAT to private school fees. The ruling, delivered on Friday, February 27, 2026, dismisses claims that the VAT levy infringes upon human rights, marking a pivotal moment for the future of independent schooling in the UK.

The Court’s Decision: Financial Impact vs. Right to Education

Three senior judges rejected arguments presented by religious schools, pupils and their parents, who contended that the VAT policy breached their fundamental rights. The core of the challenge centered on the assertion that the tax would render faith-based education financially inaccessible, effectively denying families their preferred educational path. Yet, the court determined that the introduction of VAT represents a financial consequence, not a denial of access to education, as parents retain the option of home schooling.

Bruno Quintavalle, representing Emmanuel School in Derby and other Christian institutions, argued that the VAT would make schools “unviable.” Despite these concerns, the judges emphasized that parents are not legally obligated to continue sending their children to independent schools and that alternative, lawful options – including home education – remain available.

The Financial Strain on Private Schools: Closures and Concerns

The introduction of the 20% VAT on private school fees, which took effect on January 1, 2025, was intended as a fiscal measure. However, the Independent Schools Council reports that over 100 independent schools have already closed since the policy’s implementation. This highlights the significant financial pressure the VAT levy places on these institutions and raises concerns about the long-term viability of others.

Caroline Santer, headteacher of The King’s School in Hampshire, expressed the impact, stating that the VAT is “dismantling decades of careful work and putting schools on the brink of closure.” The claimants intend to seek permission to appeal to the Supreme Court, signaling a continued fight against the policy.

Government Justification and Revenue Projections

Treasury officials defended the decision not to exempt lower-cost schools, citing concerns that such exemptions would create disparities within the sector and incentivize artificial fee suppression. The government estimates the policy will generate £1.8 billion annually by the finish of the decade, contributing to broader efforts to strengthen public finances.

What Does This Mean for the Future of Independent Education?

This ruling is likely to accelerate the trend of school closures, particularly among smaller institutions and those with limited financial reserves. Families may face increasingly difficult choices, potentially leading to a shift towards state-funded education or home schooling. The long-term consequences could include increased pressure on the state school system and a reduction in the diversity of educational options available to parents.

The Christian Legal Centre, supporting four of the schools involved, underscores the ongoing commitment to challenge the policy. The potential for a Supreme Court appeal keeps the issue alive, and the outcome could significantly reshape the landscape of independent education in the UK.

Frequently Asked Questions

Q: What is the VAT on private school fees?
A: It’s a 20% tax added to private school fees, introduced by the Labour government in January 2025.

Q: Why are schools challenging the VAT?
A: Schools argue the VAT infringes on human rights by making private education unaffordable and potentially leading to school closures.

Q: What are the alternatives for parents?
A: The court acknowledged the option of home schooling as a viable alternative to private or state education.

Q: What happens next?
A: The claimants are seeking permission to appeal to the Supreme Court.

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World

The Dutch have a new government. Now the hunger games begin. – POLITICO

by Chief Editor
written by Chief Editor

Navigating the Tightrope: The Fragile Future of the New Dutch Coalition

The Netherlands has a new government, but the path ahead is fraught with challenges. The recently formed coalition, led by Prime Minister Jetten, faces a delicate balancing act, requiring support from both the far-right and the left to achieve its goals. This precarious position has already earned the new administration the moniker “the hunger games,” signaling a period of intense political maneuvering.

Bridging the Divide: A Strategy of Appeasement?

Jetten’s strategy appears to be one of seeking consensus where possible, even if it means looking to opposing sides of the political spectrum for support. On migration, the coalition is expected to lean towards the policies favored by the far-right. Conversely, when it comes to climate initiatives and reducing nitrogen emissions from farms – key concerns for the GL-PvDA – the government will likely seek their backing.

This approach isn’t without its risks. The prime minister himself acknowledged the demand for “humility” and has prioritized appointing ministers “who are able to listen and don’t have all too big an ego.” Though, this reliance on diverse support could ultimately prove to be Jetten’s undoing.

Defense Spending: A Rare Point of Unity

One area where broad agreement exists is defense spending. There’s widespread support for increasing investment to meet NATO targets, offering a relatively stable foundation for the new government. This commitment signals a continued focus on international security and collaboration.

The Quicksand of Social Spending

The most significant hurdle lies in securing agreement on cuts to social spending. Analysts suggest that achieving consensus on this issue – from either the left or the far-right – will be exceptionally tough. This leaves the financial underpinning of Jetten’s plans vulnerable and potentially unsustainable.

The potential for backlash is significant. Left-wing voters, who contributed to Jetten’s victory in the October election, may reconsider their support if the government’s agenda leans too heavily to the right.

Pro Tip: Coalition governments, by their nature, require compromise. However, excessive compromise can alienate core voter bases and lead to instability.

The Risk of Alienating the Left

The new government’s perceived right-wing tilt poses a substantial risk. A shift in support from left-leaning voters could destabilize the coalition and potentially trigger a new political crisis. Jetten’s initial success could be short-lived if he fails to maintain the confidence of those who helped bring him to power.

Frequently Asked Questions

What is the biggest challenge facing the new Dutch government?

Securing agreement on cuts to social spending is the biggest challenge, as it’s unlikely to gain support from either the left or the far-right.

What is the government’s stance on defense spending?

There is widespread support for boosting defense spending to meet NATO targets.

How is the Prime Minister attempting to navigate these challenges?

Prime Minister Jetten is prioritizing humility and selecting ministers who are solid listeners.

Want to stay informed about European politics? Subscribe to our newsletter for the latest updates and in-depth analysis.

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Entertainment

Disney Losses: Snow White Controversy & $200M Write-Down

by Chief Editor
written by Chief Editor

Disney’s ‘Snow White’ Flop: A Harbinger of Hollywood’s Shifting Landscape?

Disney’s live-action “Snow White” has become a cautionary tale, reportedly losing nearly $170 million, or approximately Rp 2.85 trillion, according to financial filings. The film’s failure isn’t just about a poorly received remake; it signals deeper challenges facing Hollywood, particularly regarding production costs, audience expectations, and the impact of social and political discourse.

The Cost of Modern Blockbusters: A Growing Problem

The “Snow White” remake’s staggering $336.5 million price tag – exceeding the budgets of films like “Guardians of the Galaxy” and “Rogue One: A Star Wars Story” – highlights a critical trend: blockbuster budgets are spiraling out of control. This is partially due to increased reliance on visual effects, reshoots, and extensive marketing campaigns. The film’s production costs were revealed due to UK film tax rebate regulations, offering a rare glimpse into the financial realities of major studio productions.

The initial high cost was further inflated by production issues, including a fire at Pinewood Studios. Changes to the story, such as the initial plan to replace the seven dwarfs with “magical creatures,” and subsequent CGI revisions, too contributed to escalating expenses.

The Rachel Zegler Factor: Controversy and Box Office Impact

The film faced significant pre-release controversy surrounding lead actress Rachel Zegler. Her political views, including support for Palestine, reportedly caused friction with Disney producers, who were concerned about potential backlash and even an increase in death threats against co-star Gal Gadot. One producer reportedly attempted to persuade Zegler to remove a social media post.

While a direct causal link between Zegler’s views and the film’s box office performance is difficult to definitively prove, the controversy undoubtedly fueled negative sentiment and may have deterred some potential viewers. This illustrates the increasing scrutiny actors face regarding their public statements and the potential consequences for studio projects.

Reshoots and Creative Decisions: A Recipe for Disaster

The decision to alter core elements of the original story, and the subsequent need for reshoots, significantly impacted the film’s budget. This highlights a common pitfall in Hollywood remakes: attempting to modernize classic tales can alienate loyal fans while failing to attract new audiences. The initial changes and subsequent revisions demonstrate a lack of clear creative vision and a reactive approach to criticism.

A Silver Lining? Disney’s Success with ‘Lilo & Stitch’

Despite the “Snow White” debacle, Disney experienced success with its live-action “Lilo & Stitch” remake, which generated over Rp 17 trillion in revenue. This suggests that not all remakes are destined to fail, but careful consideration of source material, audience expectations, and creative execution are crucial.

The Future of Blockbusters: What Can We Expect?

The “Snow White” failure points to several potential future trends:

  • Budgetary Restraint: Studios may become more cautious about greenlighting projects with exorbitant budgets.
  • Increased Scrutiny of Talent: Actors’ public personas and political views may be more closely vetted.
  • Focus on Core Audiences: Studios may prioritize satisfying existing fanbases rather than attempting radical reinventions.
  • Streamlined Production: Efforts to minimize reshoots and production delays will become increasingly essential.
Pro Tip: Studios should prioritize strong storytelling and respect for the source material when adapting classic tales. Authenticity and emotional resonance are key to connecting with audiences.

FAQ

  • How much money did Disney lose on ‘Snow White’? Disney reportedly lost approximately $170 million (Rp 2.85 trillion) on the film.
  • What contributed to the film’s failure? High production costs, controversial creative decisions, and pre-release controversy surrounding the lead actress all played a role.
  • Was Rachel Zegler’s activism a factor in the film’s performance? Her political views reportedly caused friction with Disney and fueled negative sentiment, though a direct causal link is difficult to establish.

What are your thoughts on the future of Disney remakes? Share your opinions in the comments below!

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News

Ideal Tax Ratio Figure for Indonesia Difficult to Determine, Says Minister Purbaya

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesia’s Finance Minister Purbaya Yudhi Sadewa acknowledged on Monday, February 9, 2026, that determining an ideal tax ratio for the 2026 State Budget remains a challenge. He stated that the country’s tax structure is “rigid,” making rapid adjustments difficult.

Tax Ratio Challenges

According to Minister Purbaya, there is no clear answer to what the ideal tax ratio should be, admitting, “It’s hard to determine the ideal figure, I don’t understand.” He noted that Indonesia’s tax ratio has remained largely unchanged for decades despite increasing government expenditures.

Did You Know? Indonesia’s tax ratio plummeted to 8.42 percent in the first half of last year, approaching levels seen during the Covid-19 pandemic in 2020-2021.

While acknowledging the difficulties, Purbaya indicated that an 11-12 percent tax ratio would be sufficient to support the State Budget, with 11-11.5 percent considered preferable. He emphasized that increasing the tax ratio will require significant effort, including upgrades to existing systems and changes in the conduct of tax officials.

The government is currently aiming to raise the tax ratio from around 9 percent to 11-12 percent this year. Success, Purbaya explained, depends not only on economic growth but also on the effectiveness of the tax system and the integrity of those administering it.

Historical Fluctuations

Indonesia’s tax ratio has seen fluctuations in recent years. It stood at 10.08 percent in 2024, then decreased to around 9 percent in 2025. Prior to that, the ratio rose to 10.39 percent in 2022 and 10.31 percent in 2023, driven by tax reforms and strong commodity prices.

Expert Insight: The Minister’s acknowledgement of the difficulty in raising the tax ratio highlights the complex interplay between economic conditions, systemic challenges, and the require for behavioral changes within the Ministry of Finance to achieve fiscal goals.

Despite the recent weakening of the tax ratio, Purbaya expressed optimism that internal improvements within the Ministry of Finance – including employee rotation, strengthened management, and administrative improvements – could help boost revenue collection in 2026.

Frequently Asked Questions

What is Indonesia’s current tax ratio target?

The government is aiming to raise the tax ratio from around 9 percent to 11-12 percent this year.

Why is it difficult to determine an ideal tax ratio?

According to Finance Minister Purbaya Yudhi Sadewa, Indonesia’s tax structure has high rigidity, making it difficult to change the tax ratio quickly.

What steps is the Ministry of Finance taking to improve the tax ratio?

The Ministry of Finance is implementing internal improvements, including employee rotation, strengthening management, and administrative and supervisory system improvements.

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Business

Tax incentives have worked to boost R&D spend – Motu study

by Chief Editor
written by Chief Editor

New Zealand’s R&D Boost: Early Signs Positive, But Productivity Gains Still on the Horizon

New Zealand’s Research and Development Tax Incentive (RDTI) scheme is showing promising early results, injecting $1.83 billion into the nation’s R&D landscape. A recent report reveals a significant economic impact – a 4.2x return on government investment, translating to a $6.77 billion boost to GDP. However, experts caution that the full benefits, particularly in terms of productivity gains, are still some time away.

The RDTI: A Step Up From Previous Schemes

The RDTI replaced the R&D Growth Grants scheme, and early feedback suggests it’s a marked improvement. Businesses report that while compliance costs are higher, the increased level of R&D support makes it worthwhile. Crucially, the RDTI appears more inclusive, attracting a wider range of companies to invest in innovation. This is a vital shift, as New Zealand has historically lagged behind other OECD nations in R&D spending as a percentage of GDP.

Several firms with international operations specifically cited the RDTI as a key factor in retaining and attracting R&D work to New Zealand, preventing valuable intellectual property and skilled jobs from moving offshore. This is particularly important in sectors like agritech and software development, where global competition is fierce.

Pro Tip: Don’t underestimate the importance of meticulous record-keeping when applying for R&D tax incentives. The initial compliance burden can be significant, but it decreases over time as processes are established.

Innovation Uptick and Sales Growth

Beyond increased R&D expenditure, the report also points to encouraging signs of innovation and sales growth among participating businesses. This suggests the RDTI isn’t just funding research; it’s translating into tangible business outcomes. For example, Auckland-based robotics firm, Marathon Robotics, recently expanded its team and launched a new product line, partially attributing this growth to the RDTI support.

The Productivity Puzzle: Why Gains Take Time

Despite the positive indicators, researchers aren’t surprised by the lack of immediate productivity improvements. “We always expected a lag,” explains report co-author Tadhg Ryan-Charleton. Integrating R&D into core business operations takes time. It requires not just new technologies, but also process changes, employee training, and a shift in company culture.

The data currently available only extends to 2023, and the phasing out of the previous Growth Grants scheme continued until 2021, meaning many companies were still transitioning during the initial data collection period. This delayed uptake further contributes to the lag in measurable productivity gains.

Policy Stability: A Critical Ingredient

A consistent message from businesses interviewed was the need for policy stability. Frequent changes to R&D incentive schemes create uncertainty, discouraging long-term investment. The Australian experience, with its constantly evolving R&D tax credit system, serves as a cautionary tale. Businesses need a predictable framework to plan and execute long-term R&D projects.

Looking Ahead: Refining the RDTI

The report identifies areas for potential improvement. One key area is the eligibility of software development. The current RDTI design prioritizes activities with significant scientific or technological uncertainty, potentially excluding valuable software R&D that drives innovation in other sectors. Revisiting this approach could unlock further investment.

The researchers also examined the possibility of extending the RDTI to cover a larger portion of international R&D expenditure. Currently, only up to 10% of an entity’s total RDTI claim can relate to overseas activities. While 31% of firms have eligible overseas expenditure exceeding this cap, the analysis suggests that expanding it would likely result in a negative net impact, as high R&D spenders are less responsive to incentives.

Did you know? New Zealand’s R&D spending as a percentage of GDP is around 1.6%, significantly lower than the OECD average of 2.7%.

FAQ: RDTI Scheme

  • What is the RDTI? The Research and Development Tax Incentive is a government scheme designed to encourage businesses to invest in R&D.
  • What are the benefits of the RDTI? It provides financial support for eligible R&D activities, potentially reducing a company’s tax liability.
  • Is software development eligible for the RDTI? It can be, but the criteria are strict, focusing on activities with genuine scientific or technological uncertainty.
  • How long does it take to see results from the RDTI? Productivity gains typically lag behind R&D investment, often taking several years to materialize.
  • Where can I find more information about the RDTI? Visit the Inland Revenue Department (IRD) website.

The RDTI represents a significant step forward for New Zealand’s innovation ecosystem. While patience is required to see the full benefits, the early signs are encouraging. Continued refinement of the scheme, coupled with a commitment to policy stability, will be crucial to unlocking New Zealand’s full R&D potential.

Want to learn more about New Zealand’s innovation landscape? Explore more business news and analysis on the NZ Herald.

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