Fundamental principles of taxation and tax incentives

Fundamental principles of taxation and tax incentives

Prepared by: a student of the group MM-64i

Zoyirov Zafar

Taxation

“In this world nothing can be said to be certain, except death and taxes.”

Benjamin Franklin

PLAN

Introduction

• Fundamental principles of taxation and tax classification
• Tax incentives: exemptions and deductions
• Tax system in Uzbekistan: Tax policy

Conclusion

• Taxation
• The most important source of revenue of the government is taxes.
• The act of levying taxes is called taxation.
• A tax is a compulsory charge or payment imposed by government on individuals or corporations.
• The taxes may be imposed on the income and wealth of persons or corporations and the rate of taxes may vary.

Taxation and Government

• For government to provide goods and services such as national defense, social security, national parks, etc. it must have money.
• The Government raises money several ways including user fees and taxes.
• User Fees are fees paid by those that use the good or service: it is a price.
• Taxes may be paid by everyone or only those that use a good or service: who pays depends on the type of tax.

How Much Should Government Tax?

The government must raise revenues equal to the cost of providing the amount of goods and services that its citizens demand.

Objectives of Taxes

• Raising Revenue
• Regulation of Consumption and Production
• Encouraging Domestic Industries
• Stimulating Investment
• Reducing Income Inequalities
• Promoting Economic Growth
• Development of Backward Regions
• Ensuring Price Stability

PLAN 1

• Canons of Taxation

A good tax system is based on some principles.
Adam Smith has formulated four important principles of taxation.
A few more have been suggested by various other economists.
These principles which a good tax system should follow are called canons of taxation.