What is TAX
People seem to be the most important asset in any government or state of the nation where they belong. However, the resources that are required to maintain the social and economic viability of the state or government are provided by the people of the country itself in the form of tax. Tax can be technically defined as a certain amount of financial charges that are levied or imposed upon the individual taxpayers either by the government or by its functional equivalent. Such charges are imposed so that the cost of the various facilities and public expenditures can be endured.
Taxes can be levied by the individual government on various pretexts. For example, in British India a tax was levied for consumption of salt. However, such idiosyncrasies rarely exist in the modern world. Some very common assets or affairs can attract tax. The taxes can be collected in lieu of an individual’s income, property, social security, services used along with tariffs, fees, etc. It should be noted that if one fails to pay the taxes or try to resistor evade it payments, would be liable under punishment by law.
Many administrative divisions in a government are responsible for the levy of taxes. In some countries, taxes can be defined as direct as well as indirect. Direct taxes include those forms, which are paid by money. The indirect taxes include the labor equivalent of the taxes that have been imposed on any particular individual. Some countries do not levy taxes on their citizens at all.