Tax is defined as the lifeblood of the government.

Major revenue of the government is sourced

from taxation so that in the most pressing times of financial and economic crisis, the agency
authorized to administer taxes the Bureau of Internal Revenue (BIR) should always be on the
front line.
Classification of Taxes
As to subject matter or object
1.
Personal, poll or capitation tax - Tax of a fixed amount imposed on persons residing within
a specified territory, whether citizens or not, without regard to their property or the occupation or
business in which they may be engaged, i.e. community tax.
2.
Property tax - Tax imposed on property, real or personal, in proportion to its value or in
accordance with some other reasonable method of apportionment.
3.
Excise tax - A charge imposed upon the performance of an act, the enjoyment of a
privilege, or the engaging in an occupation.
As to purpose
1.
General/fiscal/revenue tax - A general/fiscal/revenue tax is that imposed for the purpose of
raising public funds for the service of the government.
2.
Special/regulatory tax - A special or regulatory tax is imposed primarily for the regulation
of useful or non-useful occupation or enterprises and secondarily only for the purpose of raising
public funds.
As to scope of the tax
1.

National tax - A national tax is imposed by the national government.

2.
Local tax - A local tax is imposed by municipal corporations or local government units
(LGUs).
As to the determination of amount
1.
Specific tax - A specific tax is a tax of a fixed amount imposed by the head or number or
by some other standard of weight or measurement. It requires no assessment other than the
listing or classification of the objects to be taxed.
2.
Ad valorem tax - An ad valorem tax is a tax of a fixed proportion of the value of the
property with respect to which the tax is assessed. It requires the intervention of assessors or
appraisers to estimate the value of such property before the amount due from each taxpayer can
be determined.
As to gradation or rate
1.
Proportional tax - Tax based on a fixed percentage of the amount of the property receipts
or other basis to be taxed. Example: real estate tax.
2.
Progressive or graduated tax - Tax the rate of which increases as the tax base or bracket
increases. Example: income tax.
Digressive tax rate: progressive rate stops at a certain point. Progression halts at a
particular stage.
3.
Regressive tax - Tax the rate of which decreases as the tax base or bracket increases.
There is no such tax in the Philippines.
As to who bears the burden

1.
Direct tax - A direct tax is demanded from the person who also shoulders the burden of the
tax. It is a tax which the taxpayer is directly or primarily liable and which he or she cannot shift
to another.
2.
Indirect tax - An indirect tax is demanded from a person in the expectation and intention
that he or she shall indemnify himself or herself at the expense of another, falling finally upon
the ultimate purchaser or consumer. A tax which the taxpayer can shift to another.