Tax as Obligation and Right of the People
Tax is an amount of money paid by the people to their government. Tax money that government received would be used again for the people, but not perceived directly. Its use is to provide convenience for the people, to build public facilities, construction and repair of roads, or to provide subsidies to people who can not afford. Tax is an obligation that the government could force to the people to pay by applying certain rules, and the omission of payment may be lead to serious sanctions. Citizens charged taxpayers are those who meet the terms and conditions set out in the laws of the State. In other words tax is a state income source and is used to organize and finance the state’s economy.
There are several types of taxes, namely income tax, property tax, and value added tax. Unconsciously we have to pay value added tax when we shop. It is normally is 10% of our total consuming spend. But the remittance to the government would be done by the merchant or dealer, not by the end consumer, so this kind of tax often referred as indirect taxes. Tax expenditure is calculated based on the object or expenses that we pay. Basically we pay tax for every consumer, unless we are shopping at a small kiosk or shop at traditional markets. In modern shops taxes have been calculated and included in our bills.
In addition to the purchase of goods, value added tax is also paid for service, such as hotels and restaurants. But there are services that are not allowable for taxation such as doctors, hospitals, fire department, education like school and college, and other types of services that have been specified in statute. Services that are not included in the tax services are generally in the field of community service and no commercial aims. Application of taxes to citizens is different in each State. We could find tax regulation in China is different from regulation in Europe. Until recently, value added tax is controversial because some believe that this tax imposes the less fortunate, as if they were paying more than they earn, they pay the same amount as that paid by those with higher income, so the level of fairness is questionable. But the application of this tax is based on the consideration that each person must pay what they received. It is not about income level, it is about the calculation is base on the object which received.
Categorised as: Land Value, Tax office, Tax Property