Tax is The meaning of the term, types and role of taxes

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

We are constantly surrounded by taxes. We buy groceries, get a job and get our first salary, buy a car or a summer cottage - and face these payments. According to the legislation of the Russian Federation, the tax is a mandatory payment. It is levied from legal entities and individuals in the form of alienation of owned funds for financial support of the activities of the state and (or) municipalities.

Thus, the definition already includes the functions, role and form of these payments. State institutions, state employees' salaries, he alth care, education, the army - all this requires funds from the budget, which is filled for the most part with tax payments. So, whether we like it or not, we just have to give part of our earnings to the state.

The tax system in the Russian Federation is divided into 3 levels: federal, regional and local. According to the criterion of the nature of the withdrawal, direct and indirect taxes are also distinguished. A direct tax is a payment that is directly related to the results of economic activity. Indirect ones are based on the added value of a product, turnover orsales of products or services. These include VAT, customs duties, as well as a tax on transactions with securities and excises.

Tax payments have functions:

• regulatory - aimed at regulating economic processes and solving various problems of the state's tax policy;
• fiscal - the main function, aims to create a monetary fund, from which the state can draw funds for various needs;
• social function is to redistribute funds in favor of the least protected segments of the population through subsidies;
• control - aimed at checking the efficiency of business entities, as well as the effectiveness of the state's economic policy.

The taxpayer - the person from whom payments are collected - must be aware of the special periods when certain direct taxes are payable. For some payments it is a year, for others it is a quarter. Payment of taxes is made on time, individual for each payment. Evasion of payment threatens with fines, pen alties and more unpleasant consequences.

Tax is a powerful management tool

economy. With its relatively small share in income, there is a powerful stimulation of business activity, however, andbudget revenues are relatively small. A high level of burden, as a rule, somewhat reduces economic activity and becomes a breeding ground for payment evasion. In this case for the stateThe main thing is to find a stable balance. This can also be done by applying special tax incentives: discounts, loans, offsets, deferrals and other preferences.

In the eyes of the townsfolk, of course, the tax is a piece of their income, which the state takes away for no one knows why and for what purposes. But, of course, this is not just a tribute, these funds in one form or another return to the economy and help it develop.