'Indirect Tax'

A indirect tax (such as sales tax, a specific tax, value added tax (VAT), or goods and services tax
(GST)) that increases the price of a good so that consumers are actually paying
the tax by paying more for the products. An indirect tax is most often thought
of as a tax that is shifted from one taxpayer to another, by way of an increase
in the price of the good. Fuel, liquor and cigarette taxes are all considered
examples of indirect taxes, as many argue that the tax is actually paid by the
end consumer, by way of a higher retail price.

'Surtax'

A tax levied on top of another tax. Surtax can be calculated as a percentage of

a certain amount or it can be a flat dollar amount. Surtax is generally assessed
to fund a specific government program, whereas regular income or sales taxes
are used to fund a variety of programs. Thus, one unique feature of surtax is
that it allows taxpayers to more easily see how much money the government is
collecting and spending for a particular program.

Another word, an extra tax which is paid by people who earn more than a particular large
amount, or an additional tax which is added to something which is already taxed

For example, in 1968, President Johnson enacted a 10% surtax on individual and corporate
income to help pay for the cost of fighting the Vietnam War. While most taxpayers probably did
not know what percentage of their tax dollars were going toward military spending, they could
easily see how much extra money they were being asked to contribute specifically to the war
effort.
'Capital Gains Tax'

A type of tax levied on capital gains incurred by individuals and corporations.

Capital gains are the profits that an investor realizes when he or she sells the
capital asset for a price that is higher than the purchase price.

Capital gains taxes are only triggered when an asset is realized, not while it is held
by an investor. An investor can own shares that appreciate every year, but the
investor does not incur a capital gains tax on the shares until they are sold.

A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-
inventory asset that was purchased at a cost amount that was lower than the amount realized on
the sale. The most common capital gains are realized from the sale of stocks, bonds, precious
metals and property. Not all countries implement a capital gains tax and most have different rates
of taxation for individuals and corporations.

For equities, an example of a popular and liquid asset, national and state legislation often has a
large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged
by the state over the transactions, dividends and capital gains on the stock market. However,
these fiscal obligations may vary from jurisdiction to jurisdiction.

'Tax Exemption'

A deduction allowed by law to reduce the amount of income that would otherwise
be taxed. An exemption is based on a status or circumstance rather than economic
standing. Various tax systems grant a tax exemption to certain organizations, persons, income,
property or other items taxable under the system. Tax exemption may also refer to a personal
allowance or specific monetary exemption which may be claimed by an individual to reduce taxable
income under some systems. Tax exempt status may provide a potential taxpayer complete relief from
tax, tax at a reduced rate, or tax on only a portion of the items subject to tax. Examples include
exemption of charitable organizations from property taxes and income taxes, exemptions provided to
veterans, and exemptions under cross-border or multi-jurisdictional principles. Tax exemption generally
refers to a statutory exception to a general rule rather than the mere absence of taxation in particular
circumstances (i.e., an exclusion). Tax exemption also generally refers to removal from taxation of a
particular item or class rather than a reduction of taxable items by way of deduction of other items (i.e.,
a deduction). Tax exemptions may theoretically be granted at any governmental level that imposes
taxation, though in some broader systems restraints are imposed on such exemptions by lower tier
governmental units.

'Excess Profits Tax'

A special tax that is assessed upon income beyond a specified amount, usually in
excess of a deemed "normal" income. Excess profit taxes are primarily imposed on
some businesses during a time of war or other emergency, or beyond a certain
amount of return on invested capital. Excess profits taxes are designed to generate
emergency revenue for the government in time of crisis. The tax itself is imposed
on the difference between the amount of profit that a company generally earns
during peacetime and the profits earned during times of war.
These taxes are also intended to prevent astute businessmen from reaping inordinate profits from
increased wartime governmental and consumer spending. Excess profits taxes were levied during both
world wars, as well as the Korean War. This tax is not popular with free-enterprise thinkers, who feel
that it discourages necessary wartime productivity with its removal of the profit motive.

“Excise Tax”
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the
sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within
a country or licenses for specific activities. Excises are distinguished from customs duties, which
are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.

An excise is considered an indirect tax, meaning that the producer or seller who pays the tax to
the government is expected to try to recover or shift the tax by raising the price paid by the
buyer. Excises are typically imposed in addition to another indirect tax such as a sales tax or
value added tax (VAT). In common terminology (but not necessarily in law), an excise is
distinguished from a sales tax or VAT in three ways: (i) an excise typically applies to a narrower
range of products; (ii) an excise is typically heavier, accounting for a higher fraction of the retail
price of the targeted products; and (iii) an excise is typically a per unit tax, costing a specific
amount for a volume or unit of the item purchased, whereas a sales tax or VAT is an ad valorem
tax and proportional to the price of the good.

Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and
alcohol (sometimes referred to as sin tax).
‘’Property Tax’’
A property tax (or millage tax) is a levy on 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, a county or geographical region, or a
municipality. Multiple jurisdictions may tax the same property. This is in contrast to a rent and
mortgage tax, which is based on a percentage of the rent or mortgage value.

There are four broad types of property: land, improvements to land (immovable man-made
objects, such as buildings), personal property (movable man-made objects), and intangible
property. Real property (also called real estate or realty) means the combination of land and
improvements. Under a property tax system, the government requires and/or performs an
appraisal of the monetary value of each property, and tax is assessed in proportion to that value.
Forms of property tax used vary among countries and jurisdictions. Real property is often taxed
based on its classification. Classification is the grouping of properties based on similar use.
Properties in different classes are taxed at different rates. Examples of different classes of
property are residential, commercial, industrial and vacant real property.[1] In Israel, for example,
property tax rates are double for vacant apartments versus occupied apartments.

‘’Tax Holiday’’
A tax holiday is a temporary reduction or elimination of a tax. Programs may be referred to as
tax abatements, tax subsidies, tax holidays, or tax reduction programs. Governments usually
create tax holidays as incentives for business investment. Tax holidays have been granted by
governments at national, sub-national, and local levels, and have included income, property,
sales, VAT, and other taxes. Some tax holidays are extra-statutory concessions, where governing
bodies grant reduction in tax not necessarily authorized within the law. In developing countries,
governments sometimes reduce or eliminate corporate taxes for the purpose of attracting Foreign
Direct Investment or stimulating growth in selected industries.

A tax holiday may be given in respect of particular activities,[1] in particular areas with a view to
develop that area of business,[2] or to particular taxpayers.[3] Researchers found that on sales tax
holidays, households increase the number of clothing and shoes bought by over 49 percent and
45 percent, respectively, relative to what they buy on average.
“Insurance”

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange
for payment. It is a form of risk management primarily used to protect against the risk of a
contingent, uncertain loss.

According to study texts of The Chartered Insurance Institute, there are the following categories
of risk:[1]

1. Financial risks which means that the risk must have financial measurement.
2. Pure risks which means that the risk must be real and not related to gambling
3. Particular risks which means that these risks are not widespread in their effect, for
example such as earthquake risk for the region prone to it.

It is commonly accepted that only financial, pure and particular risks are insurable.

An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder,
is the person or entity buying the insurance policy. The amount of money to be charged for a
certain amount of insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in
the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under which the
insured will be financially compensated.

‘’Capital budgeting’’ (or investment appraisal) is the planning process used to

determine whether an organization's long term investments such as new machinery, replacement
machinery, new plants, new products, and research development projects are worth the funding
of cash through the firm's capitalization structure (debt, equity or retained earnings). It is the
process of allocating resources for major capital, or investment, expenditures.[1] One of the
primary goals of capital budgeting investments is to increase the value of the firm to the
shareholders.

Many formal methods are used in capital budgeting, including the techniques such as

 Accounting rate of return

 Payback period
 Net present value
 Profitability index
 Internal rate of return
  Modified internal rate of return
 Equivalent annuity
 Real options valuation

These methods use the incremental cash flows from each potential investment, or project.
Techniques based on accounting earnings and accounting rules are sometimes used - though
economists consider this to be improper - such as the accounting rate of return, and "return on
investment." Simplified and hybrid methods are used as well, such as payback period and
discounted payback period.