Características del principio de proporcionalidad

(1) Personal, Poll or Capitation Tax – tax of a fixed amount imposed on persons residing within a specified territory, whether citizens or not, without regard to their property or the occupation or business in which they may be engaged (e.g. community (formerly residence) tax). Taxes of a specified amount imposed upon each person performing a certain act or engaging in a certain business or profession are not, however, poll taxes.

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(2) Property Tax – tax imposed on property, real or personal, in proportion to its value or in accordance with some other reasonable method of apportionment (e.g., real estate tax). The obligation to pay the tax is absolute and unavoidable and is not based upon the voluntary action of the person assessed.

(3) Privilege/Excise Tax – any tax which does not fall within the classification of a poll tax or a property tax. Thus, it is said that an excise tax is a charge imposed upon the performance of an act, the enjoyment of a privilege, or the engaging in an occupation, profession, or business. The obligation to pay the tax is based on the voluntary action of the person taxed in performing the act or engaging in the activity which is subject to the excise. The term “excise tax” is synonymous with “privilege tax” and the two are often used interchangeably (e.g., income tax, value added tax, estate tax, donor’s tax).

AS TO BURDEN OR INCIDENCE

(1) Direct Taxes – taxes which are demanded from persons who also shoulder them; taxes for which the taxpayer is directly or primarily liable, or which he cannot shift to another (eg. Income tax, estate tax, donor’s tax, community tax)

(2) Indirect Taxes – taxes which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense of another, falling finally upon the ultimate purchaser or consumer; taxes levied upon transactions or activities before the articles subject matter thereof, reach the consumers who ultimately pay for them not as taxes but as part of the purchase price. Thus, the person who absorbs or bears the burden of the tax is other than the one on whom it is imposed and required by law to pay the tax. Practically all business taxes are indirect (e.g., VAT, percentage tax; excise taxes on specified goods; customs duties).

AS TO TAX RATES

(1) Specific Tax – a tax of a fixed amount

imposed by the head or number or by some other standard of weight or measurement. It requires no assessment (valuation) other than the listing or classification of the objects to be taxed (e.g., taxes on distilled spirits, wines, and fermented liquors; cigars and cigarettes)

(2) Ad Valorem Tax – a tax of a fixed proportion

of the value of the property with respect to which the tax is assessed. It requires the intervention of assessors or appraisers to estimate the value of such property before the amount due from each taxpayer can be determined. The phrase “ad valorem” means literally, “according to value.” (e.g. real estate tax, excise tax on automobiles, non-essential goods such as jewelry and perfumes, customs duties (except on cinematographic films)).

(3) Mixed

AS TO PURPOSES

(1) General or Fiscal Tax –levied for the general

or ordinary purposes of the Government, i.e., to raise revenue for governmental needs (e.g. income tax, value added tax, and almost all taxes).

(2) Special/Regulatory/ Sumptuary Tax –levied

for special purposes i.e., to achieve some social or economic ends irrespective of whether revenue is actually raised or not (e.g. protective tariffs or customs duties on imported goods to enable similar products manufactured locally to compete with such imports in the domestic market).

Tariff duties intended mainly as a source of revenue are relatively low so as not to discourage imports.

ASTOSCOPE(ORAUTHORITYIMPOSING THETAX)

(1) National – taxes imposed by the national government (e.g. national internal revenue taxes, customs duties, and national taxes imposed by laws).

(2) Municipal or Local – taxes imposed by local governments (e.g. business taxes that may be imposed under the Local Government Code; professional tax).

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AS TO GRADUATION

(1) Proportionate – The rate of tax is based on a fixed percentage of the amount of the property, receipts or other basis to be taxed. Example: real estate tax, value added tax, and other percentage taxes.

(2) Progressive – The rate of tax increases as the tax base or bracket increases. Example: income tax, estate tax, donor’s tax.

(3) Digressive – A fixed rate is imposed on a certain amount and diminishes gradually on sums below it. The tax rate in this case is arbitrary because the increase in tax rate is not proportionate to the increase of tax base.

(4) Regressive – The rate of tax decreases as the tax base or bracket increases. There is no regressive tax in the Philippines.

Regressive/progressive system of taxation - A regressive tax must not be confused with the

regressive system of taxation.

(a) In a society where the majority of the people have low incomes, regressive taxation system exists when there are more indirect taxes imposed than direct taxes. Since the low- income sector of the population as a whole buys more consumption goods on which the indirect taxes are collected, the burden of indirect taxes rests more on them than on the more affluent groups. There should be no objection if indirect taxes are raised on luxury items consumed mainly by the higher income groups and reduced on basic commodities consumed by the lower income segments of society.

(b) Studies reveal that the progressive elements of the income and other direct taxes have not sufficiently offset the regressive effects of the indirect taxes as a whole.

A progressive tax is, therefore, also different from a progressive system of taxation.

National Internal Revenue