Economics by Simon Hobden

Task One: Complete Taxation Worksheet

therealsimoncharleshobden — 2023-02-07 07:49:58 UTC

10 Minute Timer

therealsimoncharleshobden — 2023-02-07 07:50:50 UTC

therealsimoncharleshobden — 2023-02-07 07:57:35 UTC

Task Two: Pick an In-direct Tax

therealsimoncharleshobden — 2023-02-07 10:30:00 UTC

(1) Research the tax (2) write a short paragraph explaining it – where is it imposed, what is it charged on, how much is it? (3) Add another paragraph setting out the pros and cons of the tax – has it been successful in achieving its aims?

Post Your Responses to the right side of the task

therealsimoncharleshobden — 2023-02-07 10:36:58 UTC

Task Three: Edexcel Study Companion

therealsimoncharleshobden — 2023-02-07 10:54:03 UTC

Read p.117-20 of the course companion Edexcel Theme 1 Study Companion.pdf on indirect taxes. Then assess the tax that they chose against the list of evaluative points on p.120.

Post Your Responses to the right side of the task

therealsimoncharleshobden — 2023-02-07 10:54:56 UTC

Task Four Options

therealsimoncharleshobden — 2023-02-07 10:58:53 UTC

If time allows, this video may be of interest https://www.tutor2u.net/economics/reference/indirect-taxes-2021-revision-update or you could carry out research in preparation for the Bank of England visit on Wednesday (but this must be focused research and not just reading random articles!).

Service Tax

2023-02-07 11:09:11 UTC

A service tax is when the service provider pays direct tax and recovers this money lost from the customer. The UK’s service tax is 2% (March 2021). For example, there is service tax on restaurant bills, hotels, air travel and other means of transport. According to the Service Tax in the Finance Act of 1994, a person paying service tax may be the service provider or the consumer. It is an indirect tax, where the service provider collects the tax on services from the customer and then pays it to the government. This tax, at 2%, can be inexpensive, therefore it is somewhat affordable to all customers. It also benefits the economy and government as this tax leads to sustaining multiple services. However sometimes there is no differentiation between goods tax and services tax, leading to increased overall tax.

Sales Tax

2023-02-07 11:10:04 UTC

Sales tax is an indirect tax which is collected by the retailer after the final sale in the supply chain, this means that the end consumers pay sales tax when they purchase the good or service. Resellers issue tax exemption certificates to the vendor so that they are not liable to pay sales tax when buying supplies or materials that will be resold. Therefore, sales tax is not collected until the sale is made to the final consumer. Generally, the seller is responsible to collect the tax and remit it to the appropriate tax authority. Sales tax in the UK is 20% and is often paid on goods such as clothes.

Sales tax is used to raise tax revenue for government which can be used to fund public services, education, healthcare, defence and infrastructure all of which should benefit society. However, sales tax increases prices making it more expensive for people on a lower income this could potentially reduce consumption as less people can afford goods and services. It could also affect competitiveness as businesses prices are higher so consumers may look elsewhere.

customs duty and Octroi

2023-02-07 11:10:30 UTC

Customs import tax

Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods. The key difference between taxes and duties is that duties are a type of tax on goods entering or leaving a country, while taxes are charges placed on almost all purchases. Both contribute to the total import and export costs of a product.

Octroi duty is the tax levied by local or state governments on certain categories of goods as they enter the area. It is a charge for allowing transit of good through the jurisdiction. As of 1 July 2017, with the introduction of GST country-wide, the octroi has been abolished.

Pros:

A customs duty is a levy imposed on imported or exported goods. This is a form of tax, and is typically calculated based on the value of the goods being imported or exported, or some other measure, such as its weight or cubic volume. A customs duty is usually imposed in order to provide revenue for a government, though it may also be imposed in order to protect a domestic industry from lower-priced goods coming into the country. Customs duties are especially effective when used to counteract predatory
pricing on goods being imported from outside the country.

Cons:

The primary negative impact of customs duties is on the buyers in the country into which goods are being imported. Assuming that the duty is passed through to the price paid by the buyers, they are indirectly paying the duty to their own government. Customs duties also reduce the competitiveness of products within a country, since they reduce the price pressure on competitors within the country, resulting in less need to be more efficient.

2023-02-07 11:12:15 UTC

sales tax is a tax paid on certain sales of goods and services to a governing body by the final consumer . laws usually allow the seller to collect for the tax from the consumer at the point of purchase. it varies from 5-28% depending on the services or goods category. its is charged on sales of tangible personal property.

sales tax has a pro of being simple and fair as everyone pays the same price to buy a product therefore citizens are not required to maintain any detailed records. it is also elastic s it is irrespective of income as the tax is imposed only on people who buy a particular product. however it is uneconomical as it isn't a easy job therefore the government has to have a team of administrative people to manage it effectively. as well as being harmful for industries as it increases the burden on manufacturing industries as it discouraging due to the high cost of production and less profit.

Custom duty tax

2023-02-07 11:12:55 UTC

custom duty tax is a tax imposed on cross-border goods that are collected by customs. Its determined on things such as the value, what good it is, and international trade agreements. It is not imposed on everything, only goods worth over £135 and exise goods (negative products such as alcohol and tobacco).
One benefit of this tax is it brings money to the country from other people sending goods from outside the UK that can be put towards making border control safer and higher security systems to products being sent into the UK.
A drawback is it weakens the competitiveness of an economy as less people are encouraged to send goods into the UK and causing people to settle for inferior goods.

2023-02-07 11:15:30 UTC

Custom duty and octroi tax is a tax that is imposed on goods when they are transported across international borders and are collected by customers as government revenue. This means the tax is on good and services entering or leaving the country while other taxes are places on all purchases. Duty taxes are put onto imports and exports to protect the countries economy by helping to controlling the flow of goods, especially restrictive goods. The import duty rate in the UK is no charge for £135< and for items 135> there is a 2.5% tax. Some disadvantages of Customs tax is that these taxes may weaken the economy's competitiveness which may force people to settle for more inferior goods. However an advantage is that it allows the government to increase their revenue, it also helps to reduce fraudulent activities and the circulation of black money.