Hello!

I am Jean Clarence Marcelo

I am today’s reporter for a certain topic.
I hope you listen and participate.

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 The Principles
of Taxation
and Inclusive
Growth
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The Principles of Taxation and Income
Growth

KEY WORDS
◎ Principles – a moral rule or belief that helps you know what is
right or wrong and that influences your actions
◎ Tax – a compulsory financial charge or some other type of levy
imposed on a taxpayer by a governmental organization in order
to fund government spending and various public expenditures
◎ Inclusive – including or covering all the services, facilities, or
items normally expected or required.
Adam Smith, Wealth of
Nations (1776)
“Such things as defending the country
and maintaining the institutions of
good government are of general
benefit to the public. Thus it is
reasonable that the population as a
whole should contribute to the tax
costs.”

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 TAXATION

Tax is defined as a monetary charge imposed by the

government on persons, transactions, or property to
yield public revenue for government expenditures and
other purposes.
The term tax embraces all governmental impositions on
the person, property, privileges, occupations, and
enjoyment of the people, and includes duties, imposts,
and exercises.
One useful way to view the purpose of taxation,
attributable to American economist Richard A.
Musgrave, is to distinguish between objectives of
resource allocation, income redistribution, and
economic stability.
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Taxation in
the
Philippines

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TAXATION THEORIES

◎ Benefit Theory
Security and border
◎ Cost of Service Theory
The roads NLEX and SLEX
◎ Ability to Pay Theory
Those who cannot pay should not be
imposed on taxes.
◎ Lifeblood Theory
Tac acts as a blood to supports state
and government.
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TYPES OF TAXES

◎ National and ◎ Direct and ◎ Individual

Local Indirect and
Taxes paid to the Directly paid to the Juridical
Bureau of Internal government
A human person,
Revenue (BIR) are
automatically credited
Ex. Donor’s tax Filipino, resident.
as national taxes which Initially paid to the Ex. Professional tax
goes to the national government by an
treasury. intermediary, who
then adds the amount Corporations or
Ex. Income tax, Estate
of the tax to be paid to partnerships.
tax
the value of the
Paid to the local goods/services and Ex. Income tax, Value-
government units in then passes on the added tax
the treasurer’s office. total amount to the
end-user.
Ex. Property tax
Ex. Value-added tax

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The Four R’s of Taxation

◎ Revenue
◎ Redistribution
◎ Repricing
◎ Representation

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Laws Governing
Taxation in the
Philippines

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 “
◎ The 1987 Constitution
◎ The National-International Revenue
Code (RA 8424)
◎ The Tax Reform for Acceleration
and Inclusion act (RA 10963):
TRAIN Law
◎ The Tariff and Customs Code of
1978 (PD 1464, as amended)
◎ Local Government Code of 1991
(RA 7160)
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The Role of Economic and Inclusive Growth

◎ Economic growth ◎ Inclusive growth

requires ful respect
has to be for human rights. It
inclusive to generates decent jobs,
ensure the give opportunities for
wellbeing of the all segments of
society, especially the
whole most disadvantaged
population. and distributes the
gains from prosperity
more equally.

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Priorities
◎ First Priority
To create opportunities for good and decent
jobs and secure livelihoods for all.
◎ Second Priority
To strive constantly to add value and raise
productivity.
◎ Third Priority
Countries must establish a stable environment
that enables business to flourish.
◎ Fourth Priority
To enable sustainable development.

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Taxation and Growths
Helps in building a productive
nation.

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 Why Tax?
The main purpose of taxation is to accumulate
funds for the functioning of the government
machineries. No government in the world can
run its administrative office without funds
and it has no such system incorporated in
itself to generate profit from its functioning.
The government’s ability to serve people
depends upon the taxes collected. Taxes are
indespensable in the governemnt operation
and without it , the government will be
paralyzed.

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Questions to fonder

◎ Who should carry the burden of

taxation?
◎ Who should benefit from taxes?

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Resources

https://lexclassrooms.com/principles-of-taxation/

https://www.slideshare.net/JRLopezGonzales/taxat
ion-101-basic-rules-and-principles-in-philippine-
taxation-by-jr-lopez-gonzales-for-msu-iit-political-
science-seminar

https://www.sdgfund.org/thematic-area/inclusive-
economic-growth-poverty-eradication

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 Hello again!

I am Jean Clarence Marcelo

Thank you for listening and participating!

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