ESSENTIAL CHARACTERISTIC OF

TAXATION

 Enforced Contribution

Its payment is not voluntary in nature, and

the imposition is not dependent upon the
will of the person taxed.

 Payable in cash

This means that payment by checks,

promissory notes, or in kind is not
accepted

 Proportionate in Character
Payment of taxes should be based on the
“ability-to-pay” principle: thus, the higher
the income of the taxpayer, the bigger the
amount of tax paid
 Levied in Persons and Property
 There are taxes, though, that are imposed
or levied on acts, rights or privileges.
Example: Documentary tax

 Levied by the State

As a general rule, only persons, properties,

acts, rights or transactions within the
jurisdiction of the taxing State (City,
municipality, or province) are subject for
taxation.

 Levied by the lawmaking of the state

This means that a prior law must be

enacted first by the Congress before
assessment and collection may be
implemented.

 Levied for public purposes

Taxes are imposed to support the
government for implementation of its
project and programs.