Taxation: Production and

Sale

Arguments

Against

Sales and

Production

Equity Consideration

Taxes are shifted forward and borne by the final consumers.

These type of taxes are regressive.

Essential food items and services are either exempted or subject to low rates.

Deflationary Effects

Low Consumption

Low Returns of Investment

Decrease in Manpower

Unemployment

Effects on Allocation of

Resources

• Optimum allocation of factor resources

and income is not attained because of

goods and services untaxed or subject to

low taxes.

Tariff

Duties

Purposes

As a source of revenue

As a protective device

As a vehicle for allocation of resources

As a bargaining tool

Other Facts About the Tariff

System

• It is being monitored by the Tariff

Commision, and reviewed by NEDA,

then submitted to the President for

approval.

• It provides special import duties to be

collected in addition to ordinary

import rights.

The Rights of the President

• The President has the right to

imposed 10% ad valorem to imported

goods.

• He is empowered to reduced or

increased not more than 100% the

tariffs.

• He is responsible for the approval or

rejection of trade agreements with

other countries.

The End.

Thank You for

listening!