Cebu Institute of Technology University

N. Bacalso Avenue, Cebu City

Research Paper
In
SOCSCI032
(Readings in Philippine History, Government and Constitution)

Submitted by:
Judith C. Diaz

Submitted to:
Dr. Manolito Gemota
THE CONCEPT OF TAXATION
Taxation can be defined in different ways depending on how it was being
understood. From different concept and ideas about taxation we are able to understand
how does it works and make sense towards economic development and for personal
purposes of the government and other aspects that were being able to connect with it.
However, as others try to understand the concept we are not just able to learn but able to
know how it was being applied into the field that we usually deal with. This is how taxation
being defined by some experts;
 It is the process by which the sovereign, through its law making body, races
revenues use to defray expenses of government.
 It is a means of government of increasing its revenue under the authority of the
law, purposely use to promote welfare and protection of its citizenry.
 It is collection of the share of individual and organizational income by a government
under the authority of the law.
NATURE AND PURPOSE OF TAXATION
Taxation is the inherent power of the state, acting though the legislature, to impose
and collect revenues to support the government and its organized objects.
Nature of Taxation
 Taxation is a very important system for the government. The government charges
tax on the source of income as personal income, corporate income, property,
sales, death and gift and import-export. The government uses the revenue for the
develop to the nation and other public purpose, which generates from the taxation.
 The power of taxation is inherent in sovereignty and it is for the purpose of gaining
more revenues in order to provide the needs and support the things that the
government wants to impart to the public as a means of developing economical
aspect.
Purpose of Taxation
 Primary Purpose is to provide fund or property with which the government
discharges its appropriate functions for the protection and general welfare of the
its citizen.
 The main purpose is revenue: taxes raise money to spend on armies, roads,
schools and hospitals, and on more indirect government functions like market
regulation or legal systems. This is the most widely known function.
 Governments use different kinds of taxes and vary the tax rates. This is done to
distribute the tax burden among individuals or classes of the population involved
in taxable activities, such as business, or to redistribute resources between
individuals or classes in the population.
CLASSIFICATION OF THE TAXATION
This is according to the article taken from Encyclopedia Britannia which actually
explain the 2 classes of taxation which will be furtherly discuss through its definitions that
were made, and the ideas which will cover the concept of each classification and on how
the ideas are being organized enable to understand its content and what does it implies.
 We have the DIRECT TAXES, are primarily taxes on natural persons (e.g.,
individuals), and they are typically based on the taxpayer’s ability to pay as
measured by income, consumption, or net wealth. What follows is a description of
the main types of direct taxes.
Personal or direct taxes on consumption (also known as expenditure taxes or
spending taxes) are essentially levied on all income that is not channeled
into savings. In contrast to indirect taxes on spending, such as the sales tax, a
direct consumption tax can be adjusted to an individual’s ability to pay by allowing
for marital status, age, number of dependents, and so on.
 Secondly, we are given by this INDIRECT TAXES, are levied on the production or
consumption of goods and services or on transactions, including imports and
exports. Examples include general and selective sales taxes, value-added
taxes (VAT), taxes on any aspect of manufacturing or production, taxes on legal
transactions, and customs or import duties.

TRAIN LAW
Train law as one of the law that we have in our country which is highly introduced
to show its effects and impacts which implies to some changes in terms of production,
consumption and distribution of goods to the public. It may be done for some purposes to
make change but as it was being implemented, there’s a lot of things that have been
considered. Train law was defined as a means of accelerating rates most especially in
the field of economics that creates a more effective and easier way in funding more to
build new infrastructure and for some governmental purposes in order to enhance our
economic system into the means of achieving its goal of progression.
According to a reliable source under Department of trade and industry, TRAIN
LAW (REPUBLIC ACT. NO. 10963) Tax reform for acceleration and inclusion. The goal
of the first package of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to
create a more just, simple, and more effective system of tax collection. This module
contain changes brought about by this new law on income tax rates, simplified transfer
tax, excise tax on specific products.
PURPOSE OF TAXATION
Taxation mainly refers to the actual act in which government or its taxing authority
actually collects tax from individuals and organizations. In Malawi, taxation is guided by
several principles that are mostly highlighted in the Taxation Act and Amendments. The
main purpose why it was being implemented is to accumulate funds for the functioning of
the government machineries. All governments in the world cannot run its administrative
office without funds and it has no such system incorporated in itself to generate profit from
its functioning and most especially the idea of having taxation was organized though
Duterte’s administration which enable in raising additional funds to help support the
government’s accelerated spending on its “Build, Build, Build” and social services
programs. Just by looking to its purpose and how does it will provide benefits actually
determine the great impact of it either in a good or in a bad way.

AGRARIAN REFORM
Agrarian Reform mainly focusing on the field of agriculture, its nature and how
does it gradually works. It was first defined as a rectification of a whole system in
agriculture. It is normally done by the government where they redistribute the agricultural
land among the farmers of the country. Since, it directly involved the field of agriculture
and its system we are able to understand here the idea and concept of making it into a
progressive and efficient way of production, consumption, and distribution of goods and
products for the betterment of the said economy. It is just not enough to look unto ideas
that would really appreciate the problems that everyone could ever see throughout its
system or procedural processes but it also allow everyone to look beyond what agrarian
reform can do as it gives benefit not just for the government but anybody else.

NATURE AND PURPOSE OF AGRARIAN REFORM