Frances Nicole S.

Perez BSA- 3A

Assignment no. 1

1. In your own opinion, do you think excise tax is justifiable even it is paid on top of the business
taxes? Why?

-Excise tax are primarily business taxes. They are separate from other taxes that
corporations must pay, such as income taxes. Excise taxes can produce significant government
revenues, and may do so at lower political or economic cost than alternatives such as income
taxation. Excise taxes can be tailored to impose tax burdens on those who benefit from
government services financed by excise taxes.

2. Reflect on the object of the DST. Do you think it is necessary to tax these documents?

- DST is a tax on the exercise of certain rights embodied in a document evidencing such
rights exercise. As long as there is an exercise of a right, formal documents of such exercise may
be dispensed with. Example of this is DST on shares of stocks which does not necessarily require
an issuance of Stock Certificates to be taxable, a DST on loan agreement which no longer require
a notarized loan agreement to be taxable.