A tax is a compulsory contribution from the person to the government to defray

the expenses incurred in the common interest of all without reference to special benefits
conferred upon taxpayer (Module VI, Taxation for Development). The unveiling of the
salient features of taxation is a matter of necessity. The requirement of utmost
transparency and accountability must be the primordial consideration in promoting
sound administrative system. The campaign for theoretical justice, equality and
uniformity principle must be taken cognizance in the imposition of taxes (Santiago, et
al., 2017).

Taxes represent the financial skeletal system of the government. It also serves
as the backbone and fundamental key to economic stability. These are facts which
shows the necessity of taxation. That taxes are the life-force of the government so every
qualified citizen of the country must pay his/her taxes accordingly (Santiago, et al.,
2017).

In the absence of taxes, the government cannot really exist nor survive without
financial resources to support its legitimate and necessary expenses. (Santiago, et al.,
2017). It would be beneficial for the general public to have a deeper understanding on
the importance and necessity of the historical and developmental concept of taxation in
Philippine history. In this manner, everyone could fully understand why they are paying
taxes, where does their money goes to and if it is worth the pay.

If I have the chance to revise a tax policy, it would be the value-added tax from
the national type and the tax on business for the local. Policy makers should regularly
assess the tax burden on profits to determine if the tax system is supportive of
investment without forgoing tax revenue that could be used to fund public expenditure
on infrastructure or other areas of critical importance to investors (OECD, 2013). The
government must also consider small businesses especially the ones who are just
starting.

The main statutory provisions as well as the effects of tax planning strategies
increasingly used by businesses to lower the tax burden (e.g. transfer pricing, thin
capitalization) should be taken into account. Compliance costs from excessive
complexity, non-transparency and unpredictability should also be factored in. If the tax
burden on business income is judged to be inappropriate, either too high in order to
attract investment or too low in relation to the country’s revenue needs, consideration
should be given to adjusting the parameters of the statutory tax burden (OECD, 2013).

In addition, I believe that the Comprehensive Tax Reform Program (CTRP) also
known as the Tax Reform for Acceleration and Inclusion (TRAIN) as Republic Act (RA)
No. 10963 of President Duterte had an advantage both beneficial for the government
and the common individual. The TRAIN aims to make the Philippine tax system simpler,
fairer and more efficient to promote investments, create jobs and reduce poverty. It also
aims to raise revenues that will fund the President’s build, build, build project that will
sustain high and inclusive growth of the country; and finance investments in our people
through enhanced education, health and social services (National Tax Research
Center, 2018).

In conclusion, taxes are an integral part of an economy. As a productive member

of society, it is our duty to do our part and contribute. The requirement of honesty,
transparency and accountability must be sustained in order to preserve the trust and
confidence of the people. The promotion of public interest over personal concentration
must be the primary consideration in order to achieve sustainability and development.
Moreover, it is recommended to understand the historical development of Philippine
taxation to propagate knowledge about the origin and importance of tax administration.
In this manner, people will comprehend the significance of the imposition and
implementation of taxes.

REFERENCES:

MODULE VI. TAXATION FOR DEVELOPMENT. Retrieved on August 6, 2020.

OECD (2013). Chapter 5. Tax Policy. Policy Framework for Investment User’s Toolkit.
Retrieved from http://www.oecd.org/investment/toolkit/policyareas/41890309.pdf on
August 6, 2020.

Santiago A. B., Garcia L. S., David J. (2017). Unveiling the Salient Features and
Development of Taxation in Philippine History. Imperial Journal of Interdisciplinary
Research (IJIR). Retrieved from
https://www.researchgate.net/publication/319078695_Unveiling_the_Salient_Features_and_Dev
elopment_of_Taxation_in_Philippine_History on August 6, 2020.

National Tax Research Center (2018).