Category Archives: Facts

Meaning of Tax and Taxation

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Taxes

— The enforced proportional contributions from persons and property, level by the state for virtue of its sovereignty for the support of the government and for all public needs. (Meaning according to Cooley)

— The compulsory contributions to support the state.

— Lifeblood of a government.

Taxation

— The supreme power of a sovereign state to impose burdens or charges upon persons, property or property rights for public purpose.

— Power vested upon the legislature for the purpose of raising revenues to finance government expenditures and for the general welfare and protection of its citizens.

— Method of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must therefore, bear its burden. (Cooley, Law of Taxation)

 

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Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

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Bangko Sentral ng Pilipinas or BSP is a government agency that is responsible in implementing policies pertaining to money supply. They uses monetary policies to regulate money through credit and banking system in order to attain monetary stability conducive to economic development. It was established last January 3, 1949.

The objective of Monetary Policy are the following:

  1. To maintain internal and external monetary stability in the Philippines.
  2. To foster monetary, credit and exchange conditions conducive to a balanced and sustainable growth of the economy.

Tools of Monetary Policy

  1. Required Reserves
  2. Rediscounting
  3. Open Market Operations
  4. Selective credit control
  5. Moral suasion
*The following information is from my economics book entitled “Introduction to Economics (With Land Reform, Taxation and Cooperatives) written by my professors Roman D. Leano Jr. and Ronald M. Corpuz.