FinanceTaxes

Indirect taxes - advantages and disadvantages

Indirect taxes are taxes that are levied on the price of goods in the form of special allowances. In other words, it can be said that indirect taxes are such taxes on services and goods that are included in the price of services and goods, as well as tariffs. To the basic indirect taxes it is possible to carry - profit tax, customs duties, land tax, income tax from any legal entities and sales tax. Thus, indirect taxes are characterized by the fact that the fee goes from the one who receives the services or goods for which he pays.

Value added tax is the most basic indirect tax, and it is a form of withdrawal of the created value that is included in the cost of the service or goods. All indirect taxes can be divided into two types:

- Individual taxes levied on certain groups of services and goods, these may be excises for high-yield goods or for individual groups.

- universal taxes levied on all services and goods, the exception is such goods and services that are socially significant.

The group of indirect taxes include customs duties. The most important feature of such taxes can be distinguished by the fact that they shift all responsibility to the end user. And also such taxes are going well, because they are included in the composition of the price itself. Avoiding non-payment is very difficult. Therefore, in the federal tax legislation, the first places are indirect taxes , namely VAT and excises.

Generally, depending on the source of payment of taxes, can consider direct and indirect taxes . Direct tax is determined when the source can be formed from a direct taxpayer. And an indirect tax is formed when the source of payment is in the composition of absolutely other payments from the nominal taxpayer, who, carrying out tax payments, does not bear any tax expenses. Thus, the profit tax direct tax is also an exemption from the value or income of the property. Direct taxes include not only taxes on profits, but also contributions to the federal insurance fund, income taxes, property taxes, for example, home tax, land tax, capital gains tax. Even direct taxes include taxes on donation and inheritance, tax on transactions with various securities.

Direct and indirect taxes have both their own merits and their shortcomings. In direct taxes, the most important advantage is that such taxes ensure stable and uninterrupted revenues to the state budget. Direct taxes are an effective means for purposefully influencing the factor and demand for income distribution, as well as ensuring stability. The shortcomings of direct taxes include openness. Each taxpayer sees very well the value and share of the tax that is levied on them. There are cases when, with a large amount of income, many taxpayers are eager to hide their income. This is called tax evasion.

The main advantages of indirect taxes can be attributed to a hidden nature, people may not even suspect that they are paying the tax. Due to the fact that there are indirect taxes, it is possible to maintain at a rational economic level the value of goods with a low (or very low) cost price. And from the shortcomings of indirect taxes can be attributed to the fact that they can increase the uneven nature of the distribution of the tax burden.

Thus, direct and indirect taxes can both improve the livelihoods of the population and the state, and worsen the perception of life.

Similar articles

 

 

 

 

Trending Now

 

 

 

 

Newest

Copyright © 2018 en.unansea.com. Theme powered by WordPress.