Taxation revenue is revenue arising from compulsory levies imposed by government
2.126. There is usually no clear and direct link between payment of taxes and the provision of goods and services. Taxes are levied, inter alia, on incomes, wealth, production, sale and use of goods and services, and the performance of activities. The amount of tax revenue accruing in a period is the amount generated when the underlying transactions or events which give rise to the government’s right to collect the taxes occur payday Hartville OH in that period.
2.127. Governments may regulate certain activities by issuing licences for which fees are payable. If the issue of such licences involves little or no work by the government then the revenues raised are deemed to be taxation revenue. However, if the government uses the issue of licences to exercise some regulatory function, such as checking the competency or qualifications of a would-be licensee, then the revenues raised are deemed to be revenues from the sale of services by government unless it is clearly out of all proportion to the costs of providing the services.
2.128. Taxes that are levied on a regular or periodic basis are deemed to be current taxes. Taxes that are levied infrequently and at irregular intervals or under exceptional circumstances are deemed to be capital taxes.
The different types of taxes are included in a separate taxes classification , which is included in appendix 3
Taxes on income – this category refers to taxes on income, profits and capital gains, including income and capital gains taxes levied on individuals and enterprises. Income taxes levied on non-residents are included in the category.
The category includes current taxes on capital, which consist of those taxes that are periodically payable on property or net wealth that is not used for production
Other current taxes – this category refers to current taxes other than ‘taxes on income’, ‘taxes on products’ and ‘other taxes on production’. Also included in the category are miscellaneous current taxes payable regularly such as vehicle registration fees and taxes, and stamp duty on vehicle registrations payable by persons or households. The category excludes revenues from drivers’ licences, the now discontinued broadcasting listeners’ licences and television viewers’ licences, all of which are treated as sales of goods and services.
Taxes on products – taxes on products are levied per unit of quantity or per the unit price of goods and services produced, sold, imported, exported, transferred, leased or delivered. The category includes general taxes on provision of goods and services, goods and services taxes, excises, taxes on international trade, taxes on gambling and taxes on insurance.
Other taxes on production – this category consists of all taxes on production, except taxes on products, that: (i) are levied as a result of enterprises engaging in the production of goods and services; and (ii) are payable irrespective of the profitability of the production. They may be payable on labour, fixed assets and land used in the production process. The category includes payroll taxes and other employer’s labour force taxes, taxes on immovable property, taxes on financial and capital transactions, registration taxes on vehicles used by producers, road transport and maintenance taxes, franchise taxes, broadcasting station licences and television station licences. Betterment levies are not included here and are treated as capital taxes.
- Capital taxes – this category covers capital levies and taxes on capital transfers. Capital levies are imposed at irregular and infrequent intervals on the value of assets or net worth owned by institutional units. Taxes on capital transfers are imposed at irregular and infrequent intervals on the value of assets transferred between institutional units as a result of legacies, gifts or other transfers. The category includes betterment levies, stamp duty on property transfers, estate duties, probate and succession duties, and gift duties.