Different Types of Tax you Have to Pay

Here are a few different types of tax that you have to pay to the government every year, depending upon the policy of your country.

·        Income tax:

Income tax is one of the taxes that most of the countries have. As its name says, income tax is the tax that you have to give according to your income. This means that along with the salary, you have to count all the sources of income and submit the tax according to the total amount. The more your income, the more your tax will be. Every country has its own policy regarding income tax. Developed countries like USA charge more taxes than others. However, they provide the best services to their citizens too.

·        Sales tax:

Sales tax is the type of tax that the business firms have to pay according to the sale of their product. On every sale, they have to pay something to the government too. This is called sales tax. Mostly, every year with the budget, the government increases the sales tax and in turn the sellers have to increase the price of the product, this results in the downfall of the overall sale. This is also one of the reasons of increasing inflation.

·        Federal income tax:

This is a tax which is deducted on the annual income by the national government. If you want to know more about taxes and business, you can visit www.pstein.com

Tariff:

Have you ever eaten something that is not manufactured in your own country? This is because they have been transported from other countries. In this import export, the countries impose tax on the product which is known as the international tax or tariff.

·        Property tax:

As the name says for itself, property tax is the tax that one has to give on their property every year. If you own a house or any other property, you have to give some tax on it every year. SO the more you have, the more you have to give. In most countries, these taxes help to pay the public schools and hospitals.

·        Pay roll tax:

These taxes are imposed on employees or employers and are calculated on their usual percentage of their salary. This is one of the reasons why many people don’t start their business.

·        Sin tax:

These are the taxes that are imposed on the items which are considered immoral to use like cigarettes and wine. As the product is prohibited, more people are drawn to it. This is why they have increased the taxes on them to get more benefit. However, people are still buying them and a lot of revenue is generated because of these items every year.

·        Hotel tax:

If you own a hotel, you have to be preparing yourself to give the taxes as well. This depends upon the per room policy.  This usually adds up to the 25% of the total bill. SO, before you pay the bill off make sure to check the price.