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Taxation - Jannatul Khusbu
Taxation - Jannatul Khusbu
Taxation - Jannatul Khusbu
INTRO
Table of contents
Define Tax.
The main objectives of Tax.
Distinguish between Direct tax and Indirect tax.
Conclusion.
DEFINE TAX
Tax is a mandatory financial charge levied by governments on individuals, businesses, or other
entities, typically based on income, consumption, or property ownership.
Revenue generated funds public services and infrastructure, while taxes also serve regulatory
and redistributive purposes within economies.
THE MAIN OBJECTIVES OF TAX
The main objectives of taxation encompass revenue generation to fund government expenditures,
redistribution of wealth to promote social equity, and economic stability through fiscal policy.
Taxation aims to ensure fairness and reduce economic inequality by implementing progressive tax
systems.
Additionally, taxes serve to stabilize the economy by influencing aggregate demand and controlling
inflation. Through market regulation, taxation discourages negative externalities such as pollution.
Overall, taxation serves as a multifaceted tool for achieving economic, social, and fiscal goals within a
country's governance framework.
DISTINGUISH BETWEEN DIRECT TAX AND INDIRECT TAX
CONCLUSION