☰ Contents · Economics

Excise and VAT; review of Chapter III

Lessons 20–21 · 2 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
21

Review of Chapter III

Textbook: pp. 94–96
GoalReview of Chapter III: compare income, property, land, excise and VAT taxes, tell direct from indirect taxes, solve calculation tasks.
New words
direct tax · to‘g‘ri soliqobject of tax · soliq obyektisubject of tax · soliq subyektiTax Code · Soliq kodeksi
Explanation

Taxes are divided into direct and indirect. Direct taxes — income tax, profit tax, property tax and land tax — are taken directly from the owner of income or property. Indirect taxes — excise and VAT — are added to the price of goods and paid by the buyer. Property and land taxes are local taxes, while income tax and VAT are among the nationwide taxes. In studying each tax we find the object (what is taxed), the subject (who pays), the base and the rate. All rules, rates and relief are given in the Tax Code and change over time, so current rules should be checked in an official source. Simplifying the tax system aims to encourage business, reduce tax evasion and keep the budget stable.

Worked examples
Classification: 12% income tax on wages — direct; tax on a yard’s land — direct and local; excise on petrol — indirect; VAT in the price of bread — indirect. The test question: is the tax taken from someone’s income or property (direct), or added to the price (indirect)?
A citizen pays a year’s income tax of 4 800 000, property tax of 300 000 and land tax of 200 000 so‘m. Total = 4 800 000 + 300 000 + 200 000 = 5 300 000 so‘m. All of these are direct taxes.
Class activity

“Tax map”. The class writes five taxes on the board as columns: object, subject, example rate, direct/indirect, local/nationwide. Groups fill the rows and check mistakes together.

Practice
1
Which taxes are direct and which indirect? Sort excise, VAT, income tax and land tax.
2
Yearly taxes: income tax 3 600 000, property tax 250 000, land tax 150 000 so‘m. How many so‘m in total?
3
The price is 6 000 000 and intermediate consumption 3 500 000 so‘m. How many so‘m is the 12% VAT?
4
Why does the buyer pay indirect taxes while the seller hands them to the budget?