INTRODUCTION TO

TAXATION

“TAXES, TARIFFS AND THEIR

IMPORTANCE”
 REVENUE

•Inflow Taxes and

Tariffs for the
government.
•Government’s
income
 TAXES

•Duties imposed by the

government on households
and businesses.
•Bureau of Internal Revenue
(BIR)- Philippine Government
Agency in charge for tax
collection.
 TARIFFS

•Taxes charged in either

imported or exported goods.
•Bureau of Customs- Phil.
govt. agency in charge for
tariff collection.
•Kinds of Tariffs:
•Protection Tariff- barriers to
trade
•Revenue Tariff- govt. income
MAIN GOAL OF TAXES AND TARIFFS

•To achieve
sustainable
growth
FISCAL POLICY

• Policy on taxes and tariffs.

• Aimed to achieve ideal level of
taxes and tariffs for
sustainable growth.
• Tightening or loosening policies
on taxation and tariff collection
must respond to the
government’s needs for
revenues.
CHARACTERISTICS OF FISCAL POLICY

• TIGHT FISCAL POLICY- The

government levies more taxes
and tariffs.
• LOOSE FISCAL POLICY- The
government lowers taxes and
tariffs.
TRADE POLICY AND GLOBALIZATION

GLOBALIZATION- The
integration of national
economies into the
international economy
trough trade, foreign direct
investment, capital flows,
migration, and technology.
MANAGING IMPORTS AND EXPORTS

IMPORTS- Foreign products

sold in the Philippines
EXPORTS- Filipino products
sold in other countries
MANAGING IMPORTS AND EXPORTS

NOTE: It is not suitable for a

country to rely on imports
much so it is important to
carefully select what to be
imported.
MANAGING IMPORTS AND EXPORTS

FILIPINO FIRST POLICY

Former President CARLOS P. GARCIA
- Filipino’s will patronize and choose
Filipino products first over those
foreign made. This protected
Filipino products from foreign
competition.
- FALLBACK: Many viewed this as
detrimental to development
NATURE OF TAXATION

•The basic concept

and character of
taxation.
•TAXATION- a state
power exercised
trough the legislative
body.
PRINCIPLE OF TAXATION

•Taxes Are collected to

support the government in
it’s expenses and services
for public welfare.
-The reciprocal duties of
protection between the state
and citizens.
 CANONS OF TAXATION
•BASIC PRINCIPLES OF A SOUND TAX SYSTEM:
1. FISCAL ADEQUACY- Taxes collected
by the BIR must be sufficient to fund
the necessary government expenditures
and basic services in a fiscal year.
2. ADMINISTRATIVE FEASIBILITY-
Payment of taxes must be taxpayer-
friendly.
3. THEORETICAL JUSTICE- The ability to
pay principle. A tax burden must be
proportionate to taxpayers income.
OBJECTS OF TAXATION
• TAXABLE ENTETIES- Those who bear
the burden of taxation.
1. Individual who earn considerable amount
of money.
2. Tangible and intangible properties
*Personal Properties- Properties that can
be moved
• Real property- properties that cannot be
moved
• Tangible properties- properties that can
be seen
• Intangible properties- Properties that
are unseen
 COMMON TAXES

• Income tax
• Real property tax
• Personal property tax
• Business and
occupation Taxes
Thank You…