Taxation in Bhutan
Encyclopedia
Taxation in Bhutan is conducted by the national government and by its subsidiary local governments. All taxation is ultimately overseen by the Bhutan
Ministry of Finance, Department of Revenue and Customs,, which is part of the executive Lhengye Zhungtshog
(cabinet). The modern legal basis for taxation in Bhutan derives from legislation
. Several acts provide for taxation and enforcement only germane to their subject matter and at various levels of government, while a smaller number provide more comprehensive substantive tax law. As a result, the tax scheme of Bhutan is highly decentralized.
The duty to pay taxes is affirmed by the Constitution of 2008
individually as well as in commerce. The Constitution also confirms the ability of local governments
to raise taxes in accordance to laws passed by Parliament
. Under the Constitution, taxation is specifically disqualified as the subject of national referenda
, leaving tax laws within the exclusive purview of Parliament.
Bhutan has regulated corporation
s since 1989, most recently under the Companies Act of 2000. These regulations include taxation of corporate income. As of 2011, Bhutan's Corporate Income Tax rate was 30 percent on net profits; in addition, the Business Income Tax was another 30 percent on net profits.
In 2000, Bhutan enacted its Sales Tax and Customs Excise Act. The Act sets forth the duty to pay sales tax
and excise
s on goods and services within Bhutan as well as customs
on imports according to rates and schedules published by the Ministry of Finance. The Act also provides Department of Revenue and Customs agents broad authority to inspect, confiscate, demand accounting, and to detain, fine, and prosecute those who contravene the tax laws. The Act also sets forth a procedural framework for resolving disputes, which may be appealed to the Royal Court of Justice.
The Income Tax Act of 2001 represents the first modern, comprehensive Act on income taxation in Bhutan, for both individuals and companies. The Act also provides for sales tax
, bankruptcy
, and administrative processes for hearing disputes. As of 2011, the Department of Revenue and Customs imposes no taxes on the first Nu.100,000 of income; taxes up to Nu.250,000 at 10%; up to Nu.500,000 at 15%; up to Nu.1,000,000 at 20%; and Nu.1,000,001 and above at 25%. In addition, property transfers
are taxed at 5%. Rural taxes are also imposed on land, houses, and cattle. Other direct duties includes the motor vehicle tax, foreign travel tax, royalties
, business and professional licenses
, health contribution taxes, and municipal taxes.
As part of Bhutan's program of decentralization, local governments and municipalities – including dzongkhag
s, gewog
s, and thromde
s, have been authorized to collect property, services, and transactional taxes since at least 1991. Notably, the Local Government Act of 2009
allows thromde
s (municipalities) to levy a separate tax on vacancy and underdevelopment.
Other legislation authorizes or imposes taxes against particular subject matter. For example, the Tobacco Control Act of 2010
requires persons importing tobacco to pay a tax and to furnish proof of payment upon demand. Like many such laws, the Tobacco Control Act defines a set of offenses and penalties for contravening its taxation provisions.
.
The Pay Commission, an independent government body, establishes the pay rate and expenditure budget for members of government. Public expenditure of collected funds is governed by the Public Finance Act of 2007.
, the Royal Family receives annuities set by Parliament
and is exempted from taxation.
Registered civil society organizations ("CSOs") are exempt from tax on income or other gains earned as a result of investing endowed property or other funds in accordance with regulations promulgated by the Department of Revenue and Customs. The two types of CSO, Public Benefit and Mutual Benefit Organizations, may be granted exemptions from customs duties or other taxes besides income taxes on a case by case basis under sets of regulations and procedures issued jointly by the Civil Society Organizations Authority and the Department of Revenue and Customs.
No customs or duties are levied on goods imported into Bhutan from India, as per the nations' Agreement on Trade and Commerce.
Foreign diplomatic missions, international organisations, and government agencies are generally exempted from paying customs duties and sales tax. Under the Sales Tax Act, the Ministry of Finance may also exempt any other person from sales, customs, and excise taxes at its discretion. Organizations exempt from customs duties must still pay sales tax when importing goods into Bhutan, however.
. The move was supported by some Bhutanese as curbing congestion and pollution while promoting mass transit development. The National Assembly
opposition party contested the action in the High Court of Bhutan
, Constitutional Bench, winning the initial suit. On appeal to the Supreme Court of Bhutan
, the Attorney General
argued that the tax revision was supported by pre-constitutional laws on direct and indirect taxation that remained unrepealed. The Attorney General also argued against judicial reviewability of political actions, a position based largely in United States
jurisprudence developed by Louis Brandeis
and supported by American case law
. In December 2010, while the lawsuit was pending, the government ordered a halt of all imports subject to the tax, a move the opposition criticized as contempt of court
. On February 24, 2011, the Supreme Court unanimously affirmed the High Court ruling against the government. The government lifted the import ban in early March 2011 and stated its intention to refund the taxes it had collected illegally, although it may reintroduce the tax revisions and pass them in the constitutional process. The government, though shaken by the ruling, has declared it will not resign over the debacle.
After the controversy, the World Bank
in its Financial Management Accountability Assessment warned that Bhutan's financial matters needed better legislative scrutiny. The World Bank cited inadequate examination and debate in Parliament
before passing budgets, which include tax schedules. Furthermore, the World Bank decried the inability of Parliament to modify proposed budgets, but only to ratify proposals of the Ministry of Finance.
Ngawang Namgyal
(1594–1651), taxes in Bhutan were levied by penlop
s (regional governors). In 1965, Ashley Eden
described the taxation in Bhutan as not so much a system as "squeez[ing] as much as possible out of the people under them." Modernly, governmental authority was fully consolidated in 1907 with the establishment of the Wangchuck Dynasty
and the modern state of Bhutan.
Before the 1960s, the Bhutanese government collected taxes in kind
and in the form of "labor contribution
". Taxes in kind were gradually phased out in favor of nominal monetized taxes on land, property, business income, and consumption of good and services.
In 1961, the National Assembly
established the Gyaltse Kha Lowa (Accounts and Audit Committee) to oversee government revenue and properties. In 1968, the National Assembly made the Gyaltse Kha Lowa into the Ministry of Finance under the impetus of increasing development. In 1971, the Ministry saw the establishment of its Department of Customs, later to become the Department of Revenue and Customs, responsible for implementing much of the tax law.
In 1974, the Royal Government began experimenting with decentralization, devolving some governmental powers – including taxation – to the municipalities of Thimphu
and Phuntsholing
.
The Bhutanese government enacted major reforms to the tax structure in 1989 and again in 1992. The reforms of 1989 included Bhutan's first business income tax, replacing its previous 2% turnover tax; abolishing export and nuisance taxes; and exempting plant machinery from sales and import duties. The 1992 reforms aimed to simplify administrative procedures for compliance and transparency.
Bhutan
Bhutan , officially the Kingdom of Bhutan, is a landlocked state in South Asia, located at the eastern end of the Himalayas and bordered to the south, east and west by the Republic of India and to the north by the People's Republic of China...
Ministry of Finance, Department of Revenue and Customs,, which is part of the executive Lhengye Zhungtshog
Lhengye Zhungtshog
The Lhengye Zhungtshog is the highest executive body in Bhutan. It was created in 1999 by Jigme Singye Wangchuck, the fourth King of Bhutan....
(cabinet). The modern legal basis for taxation in Bhutan derives from legislation
Bhutanese legislation
Bhutanese legislation is created by the bicameral Parliament of Bhutan. Either the upper house National Council, the lower house National Assembly, or the Attorney General may author bills to be passed as acts, with the exception of money and financial bills, which are the sole purview of the...
. Several acts provide for taxation and enforcement only germane to their subject matter and at various levels of government, while a smaller number provide more comprehensive substantive tax law. As a result, the tax scheme of Bhutan is highly decentralized.
The duty to pay taxes is affirmed by the Constitution of 2008
Constitution of Bhutan
The Constitution of Bhutan was enacted July 18, 2008 by the Royal Government. The Constitution was thoroughly planned by several government officers and agencies over a period of almost seven years amid increasing democratic reforms in Bhutan...
individually as well as in commerce. The Constitution also confirms the ability of local governments
Local Government Act of Bhutan 2009
The Local Government Act of Bhutan was enacted on September 11, 2009, by parliament of Bhutan in order to further implement its program of decentralization and devolution of power and authority.Local Gov't Act 2008: Preamble It is the most recent reform of the law on Bhutan's administrative...
to raise taxes in accordance to laws passed by Parliament
Parliament of Bhutan
The Parliament of Bhutan consists of the King of Bhutan together with a bicameral parliament.Constitution: Art. 1, § 3; Art. 10 This bicameral parliament is made up of an upper house, the National Council and a lower house, the National Assembly.Constitution: Art. 11; Art...
. Under the Constitution, taxation is specifically disqualified as the subject of national referenda
Elections in Bhutan
Elections in Bhutan are conducted at national and local levels. Suffrage is universal for citizens 18 and over, and under applicable election laws...
, leaving tax laws within the exclusive purview of Parliament.
Individual and corporate taxation
Bhutanese law generally provides for individual and corporate taxation based on income, sales, imports, and movable and immovable property.Bhutan has regulated corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s since 1989, most recently under the Companies Act of 2000. These regulations include taxation of corporate income. As of 2011, Bhutan's Corporate Income Tax rate was 30 percent on net profits; in addition, the Business Income Tax was another 30 percent on net profits.
In 2000, Bhutan enacted its Sales Tax and Customs Excise Act. The Act sets forth the duty to pay sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
and excise
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
s on goods and services within Bhutan as well as customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
on imports according to rates and schedules published by the Ministry of Finance. The Act also provides Department of Revenue and Customs agents broad authority to inspect, confiscate, demand accounting, and to detain, fine, and prosecute those who contravene the tax laws. The Act also sets forth a procedural framework for resolving disputes, which may be appealed to the Royal Court of Justice.
The Income Tax Act of 2001 represents the first modern, comprehensive Act on income taxation in Bhutan, for both individuals and companies. The Act also provides for sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
, bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, and administrative processes for hearing disputes. As of 2011, the Department of Revenue and Customs imposes no taxes on the first Nu.100,000 of income; taxes up to Nu.250,000 at 10%; up to Nu.500,000 at 15%; up to Nu.1,000,000 at 20%; and Nu.1,000,001 and above at 25%. In addition, property transfers
Transfer tax
A transfer tax is a tax on the passing of title to property from one person to another.In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property. This kind of tax is typically imposed where there is a legal requirement for registration of...
are taxed at 5%. Rural taxes are also imposed on land, houses, and cattle. Other direct duties includes the motor vehicle tax, foreign travel tax, royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
, business and professional licenses
Licensure
Licensure refers to the granting of a license, which gives a "permission to practice." Such licenses are usually issued in order to regulate some activity that is deemed to be dangerous or a threat to the person or the public or which involves a high level of specialized skill...
, health contribution taxes, and municipal taxes.
As part of Bhutan's program of decentralization, local governments and municipalities – including dzongkhag
Dzongkhag
A dzongkhag is an administrative and judicial district of Bhutan. The twenty dzongkhags of Bhutan are further divided into 205 gewogs. Some larger dzongkhags have one or more of an intermediate judicial division, known as dungkhags , which themselves comprise two or more gewogs...
s, gewog
Gewog
A gewog, or geog refers to a group of villages in Bhutan. Gewogs form a geographic administrative unit below dzongkhag districts , and above thromde municipalities. Bhutan comprises 205 gewogs, which average 230 km² in area...
s, and thromde
Thromde
A thromde is a third-level administrative division in Bhutan. The legal administrative status of thromdes was most recently codified under the Local Government Act of 2009, and the role of thromdes in elections in Bhutan was defined in the Election Act of 2008.-Thromde administration:Thromde...
s, have been authorized to collect property, services, and transactional taxes since at least 1991. Notably, the Local Government Act of 2009
Local Government Act of Bhutan 2009
The Local Government Act of Bhutan was enacted on September 11, 2009, by parliament of Bhutan in order to further implement its program of decentralization and devolution of power and authority.Local Gov't Act 2008: Preamble It is the most recent reform of the law on Bhutan's administrative...
allows thromde
Thromde
A thromde is a third-level administrative division in Bhutan. The legal administrative status of thromdes was most recently codified under the Local Government Act of 2009, and the role of thromdes in elections in Bhutan was defined in the Election Act of 2008.-Thromde administration:Thromde...
s (municipalities) to levy a separate tax on vacancy and underdevelopment.
Other legislation authorizes or imposes taxes against particular subject matter. For example, the Tobacco Control Act of 2010
Tobacco Control Act of Bhutan 2010
The Tobacco Control Act of Bhutan was enacted by parliament on June 16, 2010.Tobacco Control Act : § 1 It regulates tobacco and tobacco products, banning the cultivation, harvesting, production, and sale of tobacco and tobacco products in Bhutan...
requires persons importing tobacco to pay a tax and to furnish proof of payment upon demand. Like many such laws, the Tobacco Control Act defines a set of offenses and penalties for contravening its taxation provisions.
Use of tax money
The government either allocates tax revenues for specific state expenditures or deposits them into a Consolidated Fund. The government uses the Consolidated Fund according to budgets passed by law, and may also make grants and investments for the public interest. The national budget is overseen by the Finance Minister, who reports regularly to the National AssemblyNational Assembly of Bhutan
The National Assembly is the elected lower house of Bhutan's new bicameral Parliament which also comprises the Druk Gyalpo and the National Council. It is the more powerful house.- Current National Assembly :...
.
The Pay Commission, an independent government body, establishes the pay rate and expenditure budget for members of government. Public expenditure of collected funds is governed by the Public Finance Act of 2007.
Tax exemptions
Under the Constitution of BhutanConstitution of Bhutan
The Constitution of Bhutan was enacted July 18, 2008 by the Royal Government. The Constitution was thoroughly planned by several government officers and agencies over a period of almost seven years amid increasing democratic reforms in Bhutan...
, the Royal Family receives annuities set by Parliament
Parliament of Bhutan
The Parliament of Bhutan consists of the King of Bhutan together with a bicameral parliament.Constitution: Art. 1, § 3; Art. 10 This bicameral parliament is made up of an upper house, the National Council and a lower house, the National Assembly.Constitution: Art. 11; Art...
and is exempted from taxation.
Registered civil society organizations ("CSOs") are exempt from tax on income or other gains earned as a result of investing endowed property or other funds in accordance with regulations promulgated by the Department of Revenue and Customs. The two types of CSO, Public Benefit and Mutual Benefit Organizations, may be granted exemptions from customs duties or other taxes besides income taxes on a case by case basis under sets of regulations and procedures issued jointly by the Civil Society Organizations Authority and the Department of Revenue and Customs.
No customs or duties are levied on goods imported into Bhutan from India, as per the nations' Agreement on Trade and Commerce.
Foreign diplomatic missions, international organisations, and government agencies are generally exempted from paying customs duties and sales tax. Under the Sales Tax Act, the Ministry of Finance may also exempt any other person from sales, customs, and excise taxes at its discretion. Organizations exempt from customs duties must still pay sales tax when importing goods into Bhutan, however.
Vehicle import tax controversy
Taxation has been a topic of controversy since democratization in Bhutan. In June 2010, the first democratically elected government of Bhutan revised the import duty scheme on imported light private vehicles, raising taxes without following the procedures for bicameral presentment and debate required by the ConstitutionConstitution of Bhutan
The Constitution of Bhutan was enacted July 18, 2008 by the Royal Government. The Constitution was thoroughly planned by several government officers and agencies over a period of almost seven years amid increasing democratic reforms in Bhutan...
. The move was supported by some Bhutanese as curbing congestion and pollution while promoting mass transit development. The National Assembly
National Assembly of Bhutan
The National Assembly is the elected lower house of Bhutan's new bicameral Parliament which also comprises the Druk Gyalpo and the National Council. It is the more powerful house.- Current National Assembly :...
opposition party contested the action in the High Court of Bhutan
High Court of Bhutan
Under the 2008 Constitution, the High Court of Bhutan consists of the Chief Justice and eight Drangpons . The Chief Justice and Drangpons of the High Court are appointed from among juniors, peers, and eminent jurists by the Druk Gyalpo...
, Constitutional Bench, winning the initial suit. On appeal to the Supreme Court of Bhutan
Supreme Court of Bhutan
The Supreme Court of Bhutan is the Kingdom's highest court of review and interpreter of the Constitution. The Supreme Court consists of one Chief Justice and five Drangpons...
, the Attorney General
Attorney General of Bhutan
The Office of the Attorney General of Bhutan is the legal arm of the executive branch of the government. It is also the legal adviser of the government and its representative in the judicial system of Bhutan...
argued that the tax revision was supported by pre-constitutional laws on direct and indirect taxation that remained unrepealed. The Attorney General also argued against judicial reviewability of political actions, a position based largely in United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
jurisprudence developed by Louis Brandeis
Louis Brandeis
Louis Dembitz Brandeis ; November 13, 1856 – October 5, 1941) was an Associate Justice on the Supreme Court of the United States from 1916 to 1939.He was born in Louisville, Kentucky, to Jewish immigrant parents who raised him in a secular mode...
and supported by American case law
Case law
In law, case law is the set of reported judicial decisions of selected appellate courts and other courts of first instance which make new interpretations of the law and, therefore, can be cited as precedents in a process known as stare decisis...
. In December 2010, while the lawsuit was pending, the government ordered a halt of all imports subject to the tax, a move the opposition criticized as contempt of court
Contempt of court
Contempt of court is a court order which, in the context of a court trial or hearing, declares a person or organization to have disobeyed or been disrespectful of the court's authority...
. On February 24, 2011, the Supreme Court unanimously affirmed the High Court ruling against the government. The government lifted the import ban in early March 2011 and stated its intention to refund the taxes it had collected illegally, although it may reintroduce the tax revisions and pass them in the constitutional process. The government, though shaken by the ruling, has declared it will not resign over the debacle.
After the controversy, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
in its Financial Management Accountability Assessment warned that Bhutan's financial matters needed better legislative scrutiny. The World Bank cited inadequate examination and debate in Parliament
Parliament of Bhutan
The Parliament of Bhutan consists of the King of Bhutan together with a bicameral parliament.Constitution: Art. 1, § 3; Art. 10 This bicameral parliament is made up of an upper house, the National Council and a lower house, the National Assembly.Constitution: Art. 11; Art...
before passing budgets, which include tax schedules. Furthermore, the World Bank decried the inability of Parliament to modify proposed budgets, but only to ratify proposals of the Ministry of Finance.
History
During the reign of ShabdrungShabdrung
Shabdrung , was a title used when referring to or addressing great lamas in Tibet, particularly those who held a hereditary lineage...
Ngawang Namgyal
Ngawang Namgyal
Ngawang Namgyal was a Tibetan Buddhist lama and the unifier of Bhutan as a nation state...
(1594–1651), taxes in Bhutan were levied by penlop
Penlop
Penlop is a Dzongkha term roughly translated as governor. Bhutanese penlops, prior to unification, controlled certain districts of the country, but now hold no administrative office...
s (regional governors). In 1965, Ashley Eden
Ashley Eden
The Hon. Sir Ashley Eden KCSI CIE was an official and diplomat in British India.Eden was the third son of Robert John Eden, 3rd Lord Auckland and bishop of Bath and Wells. His uncle was George Eden, 1st Earl of Auckland...
described the taxation in Bhutan as not so much a system as "squeez[ing] as much as possible out of the people under them." Modernly, governmental authority was fully consolidated in 1907 with the establishment of the Wangchuck Dynasty
House of Wangchuck
The House of Wangchuck has ruled Bhutan since it was reunified in 1907. Prior to reunification, the Wangchuck family had governed the district of Trongsa as descendants of Dungkar Choji. They eventually overpowered other regional lords and earned the favour of the British Empire...
and the modern state of Bhutan.
Before the 1960s, the Bhutanese government collected taxes in kind
Tax in kind
Tax in kind or tax-in-kind usually refers to any taxation that is paid in kind, that is with goods or services rather than money, including:* fisc, in the Frankish kingdoms of the Medieval period...
and in the form of "labor contribution
Corvée
Corvée is unfree labour, often unpaid, that is required of people of lower social standing and imposed on them by the state or a superior . The corvée was the earliest and most widespread form of taxation, which can be traced back to the beginning of civilization...
". Taxes in kind were gradually phased out in favor of nominal monetized taxes on land, property, business income, and consumption of good and services.
In 1961, the National Assembly
National Assembly of Bhutan
The National Assembly is the elected lower house of Bhutan's new bicameral Parliament which also comprises the Druk Gyalpo and the National Council. It is the more powerful house.- Current National Assembly :...
established the Gyaltse Kha Lowa (Accounts and Audit Committee) to oversee government revenue and properties. In 1968, the National Assembly made the Gyaltse Kha Lowa into the Ministry of Finance under the impetus of increasing development. In 1971, the Ministry saw the establishment of its Department of Customs, later to become the Department of Revenue and Customs, responsible for implementing much of the tax law.
In 1974, the Royal Government began experimenting with decentralization, devolving some governmental powers – including taxation – to the municipalities of Thimphu
Thimphu
Thimphu also spelt Thimpu, is the capital and largest city of Bhutan. It is situated in the western central part of Bhutan and the surrounding valley is one of Bhutan's dzongkhags, the Thimphu District. The city became the capital of Bhutan in 1961...
and Phuntsholing
Phuntsholing
Phuentsholing is a border town in southern Bhutan, and is the administrative seat of Chukha District. The town occupies parts of both Phuentsholing Gewog and Sampheling Gewog. Phuentsholing lies opposite the Indian town of Jaigaon, and cross-border trade has resulted in a thriving local economy...
.
The Bhutanese government enacted major reforms to the tax structure in 1989 and again in 1992. The reforms of 1989 included Bhutan's first business income tax, replacing its previous 2% turnover tax; abolishing export and nuisance taxes; and exempting plant machinery from sales and import duties. The 1992 reforms aimed to simplify administrative procedures for compliance and transparency.
See also
- Bhutanese legislationBhutanese legislationBhutanese legislation is created by the bicameral Parliament of Bhutan. Either the upper house National Council, the lower house National Assembly, or the Attorney General may author bills to be passed as acts, with the exception of money and financial bills, which are the sole purview of the...
- Constitution of BhutanConstitution of BhutanThe Constitution of Bhutan was enacted July 18, 2008 by the Royal Government. The Constitution was thoroughly planned by several government officers and agencies over a period of almost seven years amid increasing democratic reforms in Bhutan...
- Local Government Act of Bhutan 2009Local Government Act of Bhutan 2009The Local Government Act of Bhutan was enacted on September 11, 2009, by parliament of Bhutan in order to further implement its program of decentralization and devolution of power and authority.Local Gov't Act 2008: Preamble It is the most recent reform of the law on Bhutan's administrative...
- Tobacco Control Act
- Constitution of Bhutan
- Income taxIncome taxAn income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
- Corporate taxCorporate taxMany countries impose corporate tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the...
- Sales taxSales taxA sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
- Property taxProperty taxA property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...