What is taxation?
Taxation is the sum of all direct duties levied or imposed in a state, sub-state region, territories, or autonomous regions, excluding those exempt under the taxation body's general tax exemption regulations and compensation for extraordinary income. Taxes are recognised as a critical development fund for every country and a source of government revenue and funds for development.
In a country, there are majorly two types of taxes
Direct taxes must be paid by the person who is subjected to them. Such types of taxes include income tax, corporation tax, wealth tax, etc. It is impossible to subcontract the collection of such taxes.
Indirect taxes can be delegated by the person who is subjected to them. Sales tax, excise duty, V.A.T., service tax, entertainment tax, customs duty, and other taxes are examples of this type of tax.
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- Tax collection and processing are critical to properly implementing government policies in every country. Taxation is an inextricable aspect of every country's development process since it's not just about collecting taxes; it's also about effectively using resources to uphold the overall country development and make people more self-sufficient. Because various ethnicities have different taxing systems, each country's taxation system is distinct. Students nowadays are more enticed to learn more about tax and develop a better understanding of the same, so they actively study taxation as a recent field of study in their law and management courses to better understand taxation policies and their effects on the development of countries.
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