TAX

M A N DATORY PAY M ENTS

C OL L E C TED F ROM
I N D IVIDUALS A N D
C ORP ORAT IONS B Y A F UN D
G OVE RNMENT AC T I V I TY .
What are Taxes?
• Taxes are mandatory contributions levied on
individuals or corporations by a government
entity—whether local, regional, or
national. Tax revenues finance government
activities, including public works and services
such as roads and schools, or programs such
as Social Security and Medicare.
• In economics, taxes fall on whoever pays the
burden of the tax, whether this is the entity
being taxed, such as a business, or the end
consumers of the business’s goods. From an
accounting perspective, there are various
taxes to consider, including payroll taxes,
federal and state income taxes, and sales
taxes.
 Types of TAXES

DirectTax

Indirect Tax
 Tax Revenue Non-tax Revenue

• Direct Tax
• Indirect Tax • Administrative Revenue
Fees
Fines & Penalties
Special Assessment
Prices
Profits from Public
Enterprises
• Grants-in-aid and Gifts
• Deficit Financing
• Borrowings
• Miscellaneous
 There are three major sources of funding available to
Government

• Explicit Fees for

government services, or • Taxes • Borrowing
user charges
Objectives of Taxation
• Rising of Revenue
• Wealth Redistribution
• Economic Price Stability
• Economic Growth and Development
• Revenue Generation
• Provision of Merit Goods
• Provision of Public Goods
Pakistan Personal Income Tax Rate
Thank You