The concept of tax includes a mandatory and gratuitous fee that is paid to the organs of the state apparatus to finance and support the activities of state apparatuses and municipal institutions. Its influence can be considered both on the domestic and foreign economies, and the size of taxation is set by the state for various reasons - from redistribution of individual incomes of the country's population to elimination of foreign economic effects.
It should be noted that the concepts of tax and collection are fundamentally different. The main difference is obligatory payment and retribution. Unlike tax, fees are paid only by written agreement of the payer, and retaliation guarantees the provision of state, municipal and other bodies to whose funds the fees are deducted and they provide counter services to the payer. Another difference is the basis of financing. Taxes are aimed at financing a public facility, while the appropriateness of the state apparatus fees has not been established. Although the functions of taxes and fees are similar.
The main functions of taxes and fees depend on their classification system. This system is a separation:
- To account for taxable items. Direct tax rates are levied on income or property of legal entities and individuals (profit, payment for the use of land and natural resources, etc.). Indirect tax is charged on the price of goods, services or work by summing them up (VAT, excise stamps, customs duties , etc.).
- On the types of bets. Rates can be proportional, progressive and regressive types. Proportional rates are set for income, regardless of its size, at the same percentage (income tax). Progressive rates increase in value depending on the change in the size of taxable income upwards (transport tax). Regressive rates decrease their value depending on the increase in income (single social tax or state duties).
- At management levels. The levels of federal, regional and local taxes. The federal tax is established by the State Duma and the Federation Council and is valid throughout the state, and is charged at flat rates. These are VAT, excise stamps, profitability of organizations, etc. Regional taxes are formed by the Tax Code and a set of laws approved by regional authorities (transport tax, property tax, etc.). Local taxes levy on property and land of individuals.
Thus, the economic system has identified the fiscal, regulatory, distribution, control and social functions of taxes. Consider each type of tax function separately.
The fiscal (main) function is characteristic of any type of state apparatus. She participates in the formation of state funds, creating the material basis for the functioning of the state economy.
The regulatory function is the distribution of taxes as active means to maintain reproduction processes, stimulating or reducing its development activity, participating in the establishment of accumulative capital and regulating the solvent demand of the population.
The control function evaluates and identifies the need for corrective changes in the tax system and policy, creating the prerequisites for the formation of the process of formation and distribution of income from economic entities.
The distribution function plays the role of a distributor of tax payment transactions between legal entities and individuals in various fields and sectors of the economy.
A social function is a combination of the distribution and regulatory tax functions. This function is involved in protecting the constitutional rights of citizens.