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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!

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Taxation: Sales and Production (Arguments Against It & Tariff Duties)