Lessons 20 · 1 lessons · N. Ismatova, O. Karimova. Foundations of State and Law: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “Yangiyul Poligraph Service”, Tashkent, 2018
20
Legal regulation of state revenue
Textbook: pp. 109–114
GoalExplain the kinds of state revenue and the concept, functions and elements of tax, and calculate a simple tax amount.
New words
a compulsory, non-refundable payment to the state set by law · Soliqthe rate: the share or amount charged per unit of the tax base · Soliq stavkasian indirect tax included in the price of goods, such as VAT · Bilvosita soliqa compulsory payment to the state, such as a state duty or a customs payment · Majburiy to‘lov
Explanation
To carry out its tasks the state draws part of the national income as state revenue, and its main part consists of taxes and other compulsory payments. A tax is a compulsory, non-refundable payment collected on the basis of law. Tax law is regulated by the Tax Code, which lists taxes such as the profit tax of legal entities, the income tax of individuals, value added tax (VAT), excise tax, land and property taxes and payments for the use of natural resources. Under current law the VAT rate is 12 percent and the personal income tax is also 12 percent. Each tax has elements: payer, object of taxation, tax base, rate, procedure of calculation, tax period and payment deadline; if one is missing in the law, the tax is not considered established. The functions of tax are fiscal (filling the budget), regulating (encouraging or restricting the economy), social (redistributing income) and control. A direct tax is charged on income or property, while an indirect tax is included in the price and paid by the buyer.
Worked examples
For an employee with a monthly salary of 4,500,000 so‘m, income tax at the 12 percent rate is 540,000 so‘m (4,500,000 × 12 : 100). It is a direct tax because it is charged on income.
If 12 percent VAT is added to a product priced at 250,000 so‘m before VAT, the tax is 30,000 so‘m and the buyer pays 280,000 so‘m. VAT is an indirect tax: it is included in the price and in effect the buyer bears it.
Class activity
“Where does tax go?” circle: the class divides tax revenue among five areas (education, health, roads, security, social support) and gives one everyday example for each.
Practice
1
State three basic features of a tax.
Compulsory; non-refundable; set on the basis of law.
2
What is the 12 percent income tax in so‘m for a person whose monthly income is 6,000,000 so‘m?
720000
3
What is the difference between direct and indirect tax? Use one example.
A direct tax is charged on income or property (income tax); an indirect tax is included in the price and paid by the buyer (VAT).
4
Why must the elements of a tax be clearly set in law?
So that the payer knows in advance what, how much and when to pay, and arbitrary charging is avoided.