Lesson 6: Purposes of Taxation

Vocabulary flashcards covering the revenue, non-revenue, protection, and development purposes of taxation from the Lesson 6 lecture notes.

Protection and Development Purpose

The use of tax policy to protect local industries and support national development goals, such as using import duties to protect Filipino producers or tax incentives to support innovation and infrastructure.

The Revenue Purpose

The primary objective of taxes to generate public funds used to maintain government agencies, pay public employees, build infrastructure, deliver social services, and answer national emergencies.

Non-Revenue Purposes

Functions of taxation beyond raising money, which include regulatory, redistributive, economic, and protective purposes.

Regulatory Purpose

A non-revenue purpose of taxation aimed at making harmful or less desirable goods more expensive.

Redistributive Purpose

A non-revenue purpose of taxation involving collecting more from those with greater capacity in order to fund public programs.

Economic Purpose

A non-revenue purpose of taxation intended to influence investment, savings, spending, employment, and growth.

Protective Purpose

A non-revenue purpose of taxation focused on protecting local industries, conserving resources, and encouraging beneficial activities.

Import Duties

Taxes on imported goods that may be used to protect Filipino producers.

Tax Incentives

Tax measures designed to support innovation and infrastructure as part of national development goals.