Regressive nature of tax rates tax rates are

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Unformatted text preview: ructure implies that as the business real income increases, it gets charged a lower rate (see, Appendix Table 3). The regressive tax structure is prescribed in the LGC. In addition to the questions concerning equity, the tax revenue is less elastic than what it would be under a flat or a progressive rate structure. 4.6 Recommendations Short Term e Improving means ofAssessing Gross Receipts: The city needs to make concerted efforts to improve assessment of the gross receipts and the under reporting. Larger establishments should provide accounts while limited manual assessments can be carried out for smaller establishments so that the collectors can make informed decisions. Efforts can also be made to coordinate with the regional Bureau of Internal Revenue (BIR) office located in the City. The BIR manager fully acknowledged the potential benefits of co-operating with the City. The City could insist on having the business income tax declaration, which would not only create an enforcement mechanism for the BIR,...
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This document was uploaded on 01/27/2014.

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