Philippine Standard time

Bouyancy and Elasticity of Philippine Taxes, CY 1990-1999


This paper measures the responsiveness of the different types of taxes and of the tax system as a whole to changes in income and to discretionary changes from 1990 to 1999. It finds that most of the direct taxes have high elasticity while most of the indirect taxes have low elasticity. It recommends that proposals raising the rates of direct taxes and indirect taxes should be considered in view of said observations.

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