According to _______, government financial operations are well-nigh impossible without taxation.
Malcolm
(T/F) Apart from this, taxation can be a powerful means in order to achieve the goals of social progress and the objectives of economic development.
(T/F) Taxation can discourage use of certain products by way of imposing heavier charges like those sin taxes which are imposed upon tobacco products.
True
_______ may be protected through taxation by imposing high customs duties to foreign goods.
Local industries
Used to reduce inequities or inequalities in wealth and income by progressively higher taxes as in the case of estate and income tax.
Taxation
Essentials of Tax:
A tax is a compulsory contribution of a person or entity to the state as per the rules.
The tax payer does not receive direct and or special benefit in return.
It is spent by the government for the common interest and benefit of the people.
It is paid only by those persons and entities who earns income exceeding a certain specified limit.
Importance of Tax - Bhim Chimoriya:
Raising government revenue
Maintaining economic stability
Regulating the economic sectors into right direction
Building and strengthening the national economy
Reducing regional economic disparity
Train Law is:
Tax Reform for Acceleration and Inclusion (Train) Law or Republic Act No 10963
Relatively decreases the tax on personal income, estate, and donation. However, it also increases the tax on certain passive incomes, documents (documentary stamp tax) as well as excise tax on petroleum products, minerals, automobiles, and cigarettes.
Train Law
Imposes new taxes in the form of excise tax on sweetened beverages and non-essential services (invasive cosmetic procedures) and removes the tax exemption of Lotto and other PCSO winnings amounting to more than P10,000.
Train Law
The most popular part of the Train law is the ______ of personal income tax of a majority of individual taxpayers.
reduction
(T/F) Under Train, an individual with a taxable income of P250,000 or less will now be exempt from income tax. Those with a taxable income of above P250,000 will be subject to the rate of 20% to 35% effective 2018, and 15% to 35% effective 2023.
