Question

in two paragraph can you please do an introduction on the aspect of taxation

Answer 1

Aspects of taxation

Levying taxes: The first aspect of taxation is to levy the tax which requires intervention by the legislature. Eg: in most countries, it is the government who decides the tax rates and other related policies. It is also important to determine on the basis of elasticities and other factors as to which segment of the Society needs to be taxed and by how much percentage. In India, there are progressive taxes which help reduce the income inequality.

Collection of taxes: The second aspect is to collect the taxes levied. It is important to administer that the tax collection is smooth and there is leakage in the system or there is no tax evasion. Taxes form an important medium to provide for the public goods which are under supplied by the private markets. So it is important that the tax revenues are sufficiently generated and there is no tax evasion.

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