COMPONENTS OF FISCAL

POLICY
GOVERNMENT REVENUE TAXES, FEES AND
OTHER SOURCES
 • COMPONENTS OF FISCAL POLICY
Government Receipts (Revenue Policy)
-cash flow that does not increase the government’s liability
Government Expenditure (Expenditure Policy)
-government allocates funds for various purposes
Public Debt:
-borrows money to finance its operations and manage deficits.
• TAX is a fee that people and entities need to pay to the government
to fund
The National Internal Revenue Code ( Tax Code) lays down
rules on taxation in the Philippines.
• Republic Act 10963 or the Tax Reform for Acceleration and
Inclusion(TRAIN ACT) which took effect in 2018.
• TYPES OF TAXES IN THE PHILIPPINES
1. National Taxes
2. Local Taxes
3. Special Taxes
1. National Taxes are fees that the BIR collects from taxpayers
all over the Philippines. It is imposed on different incomes
and transactions in the Philippines ,as defined by the BIR:
Capital gain tax
Documentary Stamp Tax ( DST)
Donor`s Tax
Excise Tax
Estate tax
Income tax
Percentage Tax- A business tax imposed on the following taxpayers:
Non-VAT- gross annual sales or receipts not exceeding Php 3 million
Value Added Tax ( VAT)
Withholding Tax
2. LOCAL TAXES
Local taxes in the Philippines are involuntary fees that local government units
(LGUs) collect from their constituents to finance activities and projects for their
city or municipality.
The following are local taxes that people and businesses pay in the Philippines:
Basic real property tax
Business of printing and publication tax
Franchise tax
Sand, gravel and other quarry resources tax
Professional tax
Amusement tax
Annual fixed tax for delivery trucks and vans
Local business tax
Barangay tax
Community tax
3. SPECIAL TAXES
Motor Vehicle User’s Charge (MVUC)
Travel tax
Head tax
Charges on forest products
Energy consumption tax

Taxes on luxury goods or "sin" products like tobacco and

alcohol help raise revenue while also discouraging their
consumption
 SOURCES:
• https://boycewire.com/types-of-fiscal-policy/
• https://l1nk.dev/IngcE
• https://grit.ph/tax/
• https://www.moneymax.ph/personal-finance/articles/tax-in-the-
philippines
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