Taxation is a way of raising incomein order to defray the necessaryexpenses of the government. It is theinherent power of the state to demandcontribution to finance all thegovernment expenses. There are manydifferent kinds of taxes in thePhilippines. But we can group theminto two basic types, namely, nationaltaxes and local taxes.

These are

taxes imposed

and collected by

the national

government

through the

Bureau of

Internal

Revenue (BIR).

The Republic Act No. 8424 otherwise known as the Tax Reform Act of 1997, as amended. It covers the organization and function of the Bureau of Internal Revenue (BIR). It sets out the power and duties of the BIR and the powers and authorities of its commissioner, regional directors, and revenue officers. The largest content of the code pertains to the income tax. This portion of the Act states the definitions, general principles, tax rates, and computations of income tax on individual taxpayers, corporations, estates, and trusts. It also prescribes the accounting periods, methods of accounting, and other income tax requirements that taxpayers should comply.

The law governing tariff and customs duties otherwise known as Presidential Decree NO. 1464 which consolidated and codified the tariff and customs laws in the Philippines. The office charged with the administration and enforcement of the law is the Bureau of Customs and Tariff Commission.

Restricted agricultural production by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as to effectively raise the value of crops, thereby giving farmers relative stability again.

An act to provide for the registration of, with the collector of internal revenue, and the imposition of fixed and special taxes upon all persons who produce, import, manufacture, compound, deal in, dispense, sell, distribute, or give away opium, marihuana, or any synthetic drugs.

Otherwise known as Republic Act No. 5447, it

consists of broad requirements that mandate

schools provide financial support appropriate for

public education.

The Travel Tax is a levy imposed by Philippine government on individuals who are leaving the Philippines, whether Filipino citizens or not, irrespective of the place where the air ticket is issued and form or place of payment, as provided for by Presidential Decree (PD) 1183.

The provisions of this Act shall control, as far as they apply, the registration and operation of motor vehicles and the licensing of owners, dealers, conductors, drivers, and similar matters.

Otherwise known as the Batas Pambansa Blg. 36, its purpose is to impose an energy tax on electric power consumption and to give businesses and consumers an incentive to use alternative energy sources, such as solar and wind power, and to raise revenue for the government in order to finance public spending.

The RA No. 1093 (An Act to Punish Tax Evasion and Willful Refusal to Pay Taxes By Aliens with Deportation), RA No. 1125 (An Act Creating The Court of Tax Appeals) and RA 2211 (An Act Creating A Joint Legislative-Executive Tax Commission, Defining Its Objectives, Powers And Functions, And For Other Purposes), are laws imposed by the government which concerns about the tax laws in the Philippines.

A presidential decree providing for the increase in capitalization of rural banks.

These are the taxes

imposed by the local

government. Usually

collected in the form

of property taxes,

and is used to fund a

wide range of civic

services from

garbage collection to

sewer maintenance.

The amount of local

taxes may vary

widely from one

jurisdiction to the

next.

Otherwise known as Republic Act No. 7160 or the Local Government Code of 1991, as amended. These taxes, fees or charges are imposed by the local government units, such as provinces, cities, municipalities, and barangays, who have been given the power to levy such taxes by the code.

All real property in the province is assessed annually for taxation purposes on the basis of its real and true value.

These are taxes imposed by the barangay or the municipality or province, in which each of it varies from place to place given certain conditions. These taxes or laws needs to be approved by the government before they get imposed to their respective divisions.