Final coverage: Lesson 4
progressive system of taxation.
Taxation
- Is the act of levying a tax, i.e., the
process or means by which the
sovereign, through its law-making body,
raises income to defray the necessary
expenses of government. As a power, it
refers to the inherent power of the
State to demand enforced
contributions for public purpose or
purposes.
Taxation
- The processor means by which the
sovereign, through its law making body,
raises income to defray the necessary
expenses of the government.
- An enforced proportional contribution
levied by the law making body of the
state to raise revenue to support the
indispensable and all the necessary
expenses of the government.
- Primary purpose: To generate funds to
defray expenses incurred by the
government in promoting the general
welfare of its citizenry.
- Other purposes: To equitably
contribute to the wealth of the nation,
to protect new industries, and to
protect local producers
Evolution of Philippine Taxation
 The tax rate is equal for all
citizens is a characteristic of a
progressive tax system in the
Philippines.
 The rate of tax increases as the
income tax base or income
bracket increases is true of a
 Tariff – is the term refers to
duties payable on goods,
whether imported or exported.
- One of the major functions of taxes is
to finance real government
expenditures. This function can simply
be states as to raise revenues.
- Through an income tax the
government tax people’s labor.
- Tax exemption is an unlawful act
escaping from payment of taxes.
- Estate tax, is a tax on the right of the
deceased person to transmit his/her
estate to his/her lawful heirs and
beneficiaries at the time of death.
 Toll - the sum of money collected for
our use of a road, bridge and high-
ways
 Raise revenue for the support of
government, is the primary purpose of
taxation.
 Productivity - is the principle of
taxation does the Philippine
government lack if it fails to raise the
needed revenue and therefore borrows
from other countries to cover its
expenses?