PURPOSE OF TAXATION
Safeguard Duty
1. Revenue-Raising
These taxes are imposed solely for the purpose
of raising revenue for the Gov.
Revenues derived from taxes are intended
primarily to finance the gov and its activities.
(Income tax, VAT, transfer tax)
2. Non-Revenue/Sumptuary
These taxes are imposed for the purpose of
achieving social economic goals, having no
relation to the raising of revenue.
(Protective Tariff)
Specifically:
a. Promotion General Welfare
b. Regulation
c. Reduction of Social Inequality
d. Encourage economic growth
e. Protectionism
In relation to Customs Administration:
2.1.Anti-Dumping Duty
Is a special duty which is equal to the difference
between the lower price of the dumped
imported articles and the higher price of a like
domestic product.
Is imposed in addition to the regular duty to
prevent the continuous dumping of imported
articles into the local market of a country at a
price less than those prevailing in its domestic
markets, which has the effect of causing
material injury or threatening to retard the
establishment of a domestic industry producing
the same product.
2.2.
A new multilateral measure in the form of an
increase tariff or additional special safeguard
duty levied in addition to the regular duty
against covered products being imported in
increased quantities, or its volume exceeds the
trigger level or its CIF value falls below the
trigger price.
Temporary return of certain barriers to trade
that were removed in compliance with the
obligations of the Republic of the Philippines
under General Agreement on Tariff and Trade
(GATT) and World Trade Org (WTO)
2.3.Countervailing Duty
Is a special duty which is equal to the
ascertained amount of subsidy granted, is
intended to offset or forestall the subsidy or
bounty directly or indirectly granted by the
manufacture, production, or exportation of a
product imported in a country which has cause
or threatens to cause material injury to a
domestic industry or retard the establishment
of a domestic industry producing identical or
like articles.
Whenever any product is granted directly or
indirectly by the government in the country of
origin or exportation, any kind of form of
subsidy upon the production, manufacture,
exportation of such product, and the
importation of such subsidized product has
caused or threatens to cause material injury to
a domestic industry/materially retarded the
growth or prevents the establishment of a
domestic industry.
Is determined by the Tariff Commission,
Secretary of Trade and Industry (non agri
product), or Secretary of Agriculture (agri
product) shall issue a department order
imposing countervailing duty equal to the
ascertained amount of subsidy.