ECO-Fiscal policy, Page no 286-287 #ECO #Fiscalpolicy
What are taxes:
Taxes are mandatory financial charges or levies imposed by a government on individuals, businesses, and other entities to fund public expenditures and essential services. They are a primary source of revenue for governments and are crucial for maintaining infrastructure, providing public goods, ensuring national security, and supporting social programs. Taxes are typically enforced by law, and failure to pay them can result in penalties or legal consequences.
The types of taxes:
Direct Taxes:
These are taxes paid directly to the government by individuals or organizations. Examples include:
Income Tax: Charged on individual or corporate earnings.
Property Tax: Levied on real estate ownership.
Wealth Tax: Imposed on the net worth of individuals.
2. Indirect Taxes:
These are taxes collected by intermediaries (such as businesses) from consumers. Examples include:
Sales Tax: Applied to the sale of goods and services.
Value-Added Tax (VAT): Charged at each stage of production or distribution.
Customs and Excise Duties: Imposed on imported goods or specific domestic goods like alcohol and tobacco.
THE END
What are the key components of a tax return, and how is it filed?
How do governments use tax revenue to fund public services and infrastructure?
What are the common methods of tax evasion and avoidance, and how are they addressed by authorities?
How do international tax treaties affect cross-border taxation?
What are the implications of tax reforms on the economy and society?
How can individuals and businesses plan their taxes effectively to minimize liability?