Towards the strategic development of the system and philosophy of tax legislation
Taxonomic system
The use of quality standards in the classification of taxpayer and identification of tax brackets
By: Mustafa Obeid *
Most countries around the world resort to granting exemptions and tax benefits for certain types of commercial, industrial and agricultural activities, according to criteria that vary from country to other dependent on the urgent needs and priorities set by the state in its strategic development plan and the sectors that is most needed to encourage work and investment in. The state may also resort to differentiating between the tax brackets to which individuals who carry out the same activity according to the amount of income or profits earned, by imposing a progressive tax system commensurate with the size of income and achieving relative tax justice among them.
For example, the State may grants tax benefits and exemptions for specific periods in the agricultural sector in general or when planting certain crops that the State wishes to encourage, for example to meet the urgent needs in society, or it may go further more and encourage the cultivation of certain crops in specific seasons when these crops are scarce and grant seasonal tax benefits to meet the needs of society in all circumstances and in the worst environmental and climatic conditions.
In the progressive tax system, the state uses different tax rates that are directly proportional to the amount of net income or profits achieved by the taxpayer, so that the tax rate increases as the amount of this income or profit increases, in order to achieve fairness and balance in the “relative value” of Funds that is collected from all taxpayer of different incomes.
With the increasing burdens and obligations that push on the state, both in developing and even developed countries, resulting from population inflation, and the the geometric growth of successive generations and the corresponding geometric growth of their problems and basic needs, some countries resort to imposing more taxes or even increasing Tax rates in general in the society in order to increase the income allocated to solve these problems and meet the needs of the growing population.
In spite of all efforts made in most countries to develop tax laws and legislations and the introduction of rules and brackets Tax segments that are consistent with the strategic plans of each country and consistent with the priorities of sustainable development and achieving relative justice among individuals on the basis of “Quantitative” difference in the amount of their income, however, none of these countries concerned with the achievement of relative tax justice among individuals on the basis of the “Qualitative” difference in the manner in which such incomes were realized