Professional Documents
Culture Documents
Nature of Taxation and Purposes of Taxation
Nature of Taxation and Purposes of Taxation
B.
https://www.officialgazette.gov.ph/constitutions/the-1987-constitution-of-the-republic-of-the-philippines/the-1987-constitution-of-the-
republic-of-the-philippines-article-x/#:~:text=Local%20governments%20shall%20be%20entitled,by%20way%20of%20direct%20ben
efits.
.
C. https://lawphil.net/judjuris/juri1988/jul1988/gr_l_30232_1988.html 3
Purposes of Taxation
Primary Purpose:
The Revenue Purpose of Taxation on the part of the government is to
provide funds or property with which to promote the general welfare and
the protection of its citizens and to enable it to finance its multifarious
activities. A government can run its administrative set up only through
public funding which is collected in the form of tax.
▪ READ and ANALYZE: G.R. No. L-41631, December 17, 1976, HON.
RAMON D. BAGATSING, et al. v. HON. PEDRO A. RAMIREZ, et al.,
74 SCRA 306
4
Purposes of Taxation
Secondary Purpose:
While the primary purpose of taxation is to raise revenue for the support of
the government, taxation is often employed as a devise for regulation or
control (implementation of State’s police power) by means of which certain
effects or conditions envisioned by the government may be achieved such
as:
• Reduction of Social Inequality
• Encourage the Economic Growth
• Promotion of General Welfare
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Simple Exercises
Give examples
During this time of economic turmoil,
research examples of statutes or even
proposed bill lodged in the Philippine
Congress with regards to taxation and
determine its purposes.