TAXATION

Taxation
By: Kelsey Villalobos

Opinion: Bayad ng mga mamayanan sa pamahalaan. Dito kumukuha ng budget para sa mga proyekto ng gobyerno tulad ng paggawa ng tulay, pabahay, edukasyon, pangkalusugan at marami pang iba.

Taxation is a means by which governments finance their expidenture by imposing charges on citizens and corporate entities.

Type of TAX:

Capital Gains Tax: is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

Documentary Stamp Tax: is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.

Donor's Tax: is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible.

Estate Tax: is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiary.

Income Tax: is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.

Percentage Tax: is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales and/or receipts do not exceed P750,000 and who are not VAT-registered.

Value Added Tax: is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.

GROSS DOMESTIC PRODUCT

Gross Domestic Product
By: Ricardo Geralde



The Gross Domestic Product (GDP) in Philippines was worth 250.27 billion US dollars in 2012. The GDP value of Philippines represents 0.40 percent of the world economy. GDP in Philippines is reported by the The World Bank. From 1960 until 2012, Philippines GDP averaged 56.1 USD Billion reaching an all time high of 250.3 USD Billion in December of 2012 and a record low of 4.4 USD Billion in December of 1962. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time.

GROSS NATIONAL PRODUCT

Gross National Product
By: Danilo Dayanghirang

Opinion: Ang Opinyon ko sa GNP ay upang umunlad ang ating bansa at dapat mag export tayo ng goods o magpasok ng pera  parehas ng sa  OFW.

Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".

Basically, GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. GNP measures the value of goods and services that the country's citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal.

The importance of GNP can be judged by the following facts :

1. Study of Economic Condition : The national income throws light on the economic condition of the country. If GNP increases over a year, it shows that we are going towards prosperity. If it falls it indicated that economy is declining.

2. Comparison with other Countries : The GNP figures help us to know the economic position of the people of the various countries and we can make comparison with our own GNP.

3. Information about Saving, Investment and Consumption : The study of GNP provides us the information about the marginal prosperity to consume and saving. So it guides us in making the policies about saving and investment.

4. Information about the Distribution of Wealth : The GNP throws light on the earnings of the various factors of production and the total out put of the country. It also informs that distribution of wealth is equal or unequal.

5. Solution of Economic Problems : The study of GNP is very useful for the economists in solving the problems of inflation, deflation, poverty and low standard of living.

6. Information about the Various Sectors : The study of national income also informs us about the contribution of various sectors like agriculture, industry, insurance and transport. If any one sector is less productive then different measures can be adopted to improve it.

7. Guidance for Economic Planners :  The study of GNP is very useful for the government and the planners to frame the economic policies.

8. Government Contribution in the Economic Development : GNP also throws light on the role of state played for economic development of the country. In a socialistic economy it has full control while in a mixed economy government and public both co-operate with each other to improve the economic condition of the country.

9. Foreign Debt : The study of GNP shows the expenditure and source of the country. So to fill the gap between revenue and expenditure foreign aid is demanded.

10. Information about Employment : The GNP also throws light on the source of employment. For example GNP of Pakistan shows that major portion of our population is engaged with agriculture.

11. Analysis of Balance of Payment : Through the GNP we know the import and export condition of the country. The deficit in the balance of payment is met by the different methods.

12. Rate of Economic Growth : The GNP also throws light on the rate of economic growth. We can also make a comparison of present rate of growth with the previous years. It indicates that rate economic development is increasing or falling.

Advantages and Disadvantages of GNP

The main advantages of using GNP as a measure is that you can gauge the overall output of your domestic factories.

There are several Disadvantages if that's what you want to call them. GNP measures exactly what it is said to measure, so it's hard to have disadvantages, but for the purpose if answering:

1. It doesn't take into account illegal and black market trading.

2. It doesn't take into account GNP/population, which is citizen productivity. If the GNP only gradually increases, while the population of the same country is booming, then that could point to a major problem, and a slowing economy, instead of a growing economy.

3. All kinds of other issues dealing with GNP would be: Not measuring domestic companies' presence in foreign nation (GNP ignores what GNP measures), statistical discrepancies (back to the illegal trading, but also simple human measurement error.)

NATIONAL BUDGET

National Budget

By: Junjee Ramillete

A National budget is a document plan of public revenue and expenditure that is often passed by the legislature, approved by the chief executive-or president and presented by the Finance Minister to the nation. The budget is also known as the Annual Financial Statement of the country. This document estimates the anticipated government revenues and government expenditures for the ensuing (current) financial year. For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for municipal and county revenues, while sales tax and/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues.

Budget by Sector

The bulk of the budget will once again be devoted to Social Services—which will receive 34.8 percent of the National Budget—to continue the Administration’s focused campaign on poverty alleviation. Economic Services will claim the second highest sectoral allocation, with 25.5 percent devoted to it for 2013.

Budget by Expense Class

Under the 2013 National Budget, Capital Outlays (CO) will increase by 15.7 percent to P380 billion from this year’s level of P328.3 billion. Of this amount, Infrastructure and Other Capital Outlays will increase by 17.5 percent to P296.7 billion from P252.4 billion in 2012. The increases will help boost the momentum currently driving the transport, tourism and agriculture industries.

Meanwhile, Current Operating Expenditures (COE) account for P1.6 trillion of this Budget: an increase of 9.2 percent from the current year’s P1.465 trillion, which accounts for the jump  in Personal Services (by 8.0 percent to P641.3 billion) to support the full implementation of the Salary Standardization Law III , among others. Meanwhile, Maintenance and Other Operating Expenditures (MOOE) are up by 17.5 percent to P313.3 billion due to the expansion of social and economic programs. Interest Payments are also up by 0.2 percent to P333.9 billion this year.

The budget for GOCCs posted a significant increase of 103.1 percent, bringing the total budget to P44.3 billion. Of this, subsidies increased by more than 114.3 percent to P42.3 billion.

The LGU shares in the National Budget also rose by 9.7 percent to P318.1 billion due to improved revenue collections in 2010, the base year for computing the Internal Revenue Allotment (IRA) of LGUs for 2013.

Budget by Region

The regional budgetary allocations increased by 28.5 percent to P990.4 billion, or 49.4 percent of the total proposed Budget for 2013. In comparison, the P770.5 billion allocation for the regions in 2011 was only 42.4 percent of the budget. In particular, budgetary allocations for Visayas and Mindanao grew by 21.8 percent and 22.1 percent year-on-year, respectively.

TOP 10 DEPARTMENTS

PAIKOT NA DALOY NG EKONOMIYA

PAIKOT NA DALOY NG EKONOMIYA

By: Patrick Panes

Alam mo ba kung paano dumadaloy ang dugo sa ating katawan? Ang pinakamahalagang "Makina" ng ating katawan ay ang ating puso. Paano kung hindi siya masalinan ng dugo?

Ang inilahad sa unang talata ay maaring ihalintulad sa maging sanhi ng kanyang kamatayan.

• Maayos na takbo ng ekonomiya kung ang ugnayan ng iba't ibang bahagi nito tulad ng dayuhang sektor ay naging produktibo.

• Kapag may trabaho at may mataas na kita ang halos lahat ng pwersa ng paggawa.

 SAMBAHAYAN

1. Nagmamayari sa salik ng produksyon.

2. Nagbabayad sa gastos ng mga produkto’t serbisyo.

3. Tumatanggap ito ng kita galing sa bahay kalakal bilang kabayaran sa itinustos nilang salik ng produksyon.

BAHAY-KALAKAL

1. Gumagamit ng mga salik ng produksyon na nagmula sa sambahayan upang gawing produkto at serbisyo.

2. Nagbibili ng mga produkto at serbisyo sa mga sambahayan.

IMPLASYON

Implasyon (Presyo)
     By: Jason Revil

Ano ang nararamdaman mo kapag nakarinig ka ng pagtaas sa presyo ng mga bilihin? Tataas din kaya ang matatangap mong sweldo?

Ang pagtaas ng halaga ng mga produkto at serbisyo ay tinatawag na Implasyon. Ang Implasyon ay ang pagtaas sa pangkalahatang antas ng mga presyo ng mga kalakal at mga serbisyo sa isang ekonomiya sa loob ng periodo ng panahon.


Pagsukat ng Rate ng Implasyon

Ano nga ba ang ugnayan ng rate ng implasyon sa daloy ng ating ekonomiya?

• Isa sa mga price index ng karaniwang ginagamit sa pagtustos ng real GNP ay ang consumer price index (CPI). Ang CPI ay siyang sumusukat sa antas ng pagbabago sa presyo ng mga produkto at serbisyo.

Rate ng Implasyon = CPI(2)-CPI(1)    X 100

                                CPI(1)

Ang bawat unit ng salapi ay makakabili ng mas kaunting mga kalakal gaya ng produkto at mga serbisyo.

Ang CPI (2) ay ang bagong Consumer Price Index at 

Ang CPI (1) ay ang dating Consumere Price Index

Halimbawa:

CPI(2) = 2007 - 141.8

CPI(1) = 2006 - 137.9

Rate ng Implasyon = 141.8 – 137.8   X 100

                                     137.9

                            

                            = 2.8

*Ang rate ng implasyon ng 2006-2007 ay 2.8.

Isa ring repleksiyon ng pagguho ng kakayahang pag bili ng pera ng isang kawalan ng real sa halaga sa panloob ng kasangkapan ng pagpapalit at unit ng kahalagahan sa ekonomiya.

Paraan ng Pagpigil sa Implasyon

Mahirap bang pigilan ang tumataas na halaga ng bilihin?

Deplasyon o pagbaba ng halaga ng bilihin kapag nakalilikha ng higit na maraming produksyon at serbisyo kaysa demand.

Kaya upang mapigilan ang implasyon, kailangang dagdagan ang buwis na nililikom ng pamahalaan upang makalikha ng malaking produksyon na kailangan ng bansa.

Ang Implasyon ay salamin ng pagtaas ng mga presyo sa pamilihan na naging dahilan upang harapin ng pamahalaan ang suliranin na nagbunsod sa mataas na presyo.