TOLOSA, JASTINE JUNE S. BSECE- 2 2 ND A.

Y 11-12

Requisites for a Valid Tax

1.

Tax must be used for public purpose; Tax laws must be uniform and equitable; Tax assessment and collection must be uniform and equitable;

2.

3.

4.

Persons, rights, and property taxed must be within the jurisdiction of the Sovereign State;

7 Purposes and Objectives

1.

Revenue

2.
3. 4. 5. 6. 7.

Regulation
Promotion of General Welfare Encourage Economic Growth Reduction of Social Inequity Protectionism Incidental Purposes

Revenue
To

be one of the bases of the government budget under the General Appropriation Law.
taxes imposed on tobacco and alcoholic products, on night clubs, cabarets, cockpits, and luxury product.

Regulation
like

Promotion
Tax

of General Welfare

used as a tool of police power to promote general welfare

Encourage
The

Economic Growth

granting tax incentives or exemptions in order to encourage and attract investment to promote employment and the country's economic growth

Reduction

of Social Inequity

Using progressive system of taxation to minimize or prevent the undue concentration of wealth controlled by few families and that those have wealth to pay should assume the bigger portion of the tax burden.

Protectionism

Tax imposed to protect local industries from foreign industries or competition like the imposition of protective tariff and customs duties.

Incident
As

Purposes

a tool in International Relations the State may restrict trade relations with foreign countries and in the process it can impose higher custom and tariff rates on imported products or the State may open trade relation with other countries to reduce taxes on importation.

To

protect or restrict trade relations, the state may impose the following special duties:
Discriminatory
Countervailing

duty
duty

Marking

duty
duty

Dumping

THE END