Speaking in a previous section on our rights, we can’t help but also refer to the obligations we have to others and to the community we live in. At Woli Academy we believe that every active citizen should be well aware not only of his rights but also of his obligations. So, now we will talk a little about financial obligations, and more precisely about taxes. Although you probably still have time ahead to start paying taxes, it is quite important to know some basic information about taxes and their various types in order to be able to better understand the economic reality around you and prepare properly for your adult life.
Taxes are sums of money that citizens have the obligation to pay to the state and are divided into three main categories. “income taxes,” “wealth taxes,” and “expenditure taxes.” “Income tax” is a direct tax that every citizen pays depending on his annual income, that is, depending on the money he makes each year. Similar is the “wealth tax” which is essentially a tax that someone pays according to what belongs to him such as a house, a car, money in the bank, shares and everything else that is someone’s asset.
For the above two categories of taxes, it is good to know that typically the amount paid by someone to the state is calculated as a percentage (%) and is defined according to the “tax base” that each citizen belongs to, i.e. the income and property that each taxpayer has. Finally, as we said above, there is a third basic category of tax which is the “expenditure tax”. “Expenditure tax” is an indirect tax. You pay for it in your daily life when you buy a product or service. For example, this tax includes the costs of importing a product into the country (duties) and is “hidden” in the price you pay for your purchase, thus increasing the final price.
Try talking to your parents and ask them about what you learned about taxes and we are sure that you will greatly enrich your knowledge!