Hello friends, in today’s article, we will learn about tax. What exactly is tax, and what does it mean? We will also explore some of its definitions and explain the key features of tax.

So, let’s begin this article and understand what tax is, along with its meaning and definition.

What is tax? Meaning Of Tax:

Tax refers to the amount of money that the government compulsorily collects from its citizens to meet the expenses incurred on public welfare activities.

However, there is no direct or explicit relationship between the payment of tax and the benefits received by the taxpayer in return. Tax serves as one of the primary sources of government revenue.

Now, let us learn about some definitions of tax.

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Tax Definitions: (What Is Tax)

• According to Seligman, “Tax is a compulsory contribution made by the public to the government, imposed for expenditure on the general welfare of the public and not for conferring any special benefits to individuals.”
• According to Prof. D. Marko, “Tax is the price that every citizen pays to the government in exchange for the cost of general public services they will consume.”
• According to Prof. Voehlr, “It is a compulsory contribution. Although it can be paid voluntarily, it is not a penalty for legal offenses.”
• According to Taylor, “Tax is a mandatory payment made to the government without the expectation of direct benefit to the taxpayer.
• According to Professor Dalton, “A tax is a compulsory contribution imposed by a public authority, whether or not services are provided to the taxpayer in return. It is not imposed as a punishment for any offense.”
• According to Professor Findlay Shiraz, “A tax is a compulsory payment collected by public authorities, which is used to meet the expenses of public interests and is not related to any specific benefit.”

In simple terms, a tax is a payment that a country’s government compulsorily collects from the general public to cover the expenses of activities that benefit the public.

Now, let’s talk about some key characteristics of taxes.

Key Features Of Tax:

The key features of tax are as follows.

1. Compulsory Payment = Paying taxes is mandatory, meaning that the person on whom the tax is levied must make the payment. If a person fails to pay taxes, refuses to pay, or commits tax evasion, the government can impose a penalty. According to Prof. Vyuhler, “It is a compulsory contribution. Although it can be voluntarily given, it is not a penalty like legal offenses.”
2. No Direct Relationship Between Tax and Expenditure = There is no direct relationship between the tax paid by an individual and government expenditure. That is, it is not necessary that the taxpayer should directly benefit from the tax paid. According to Professor Tassing, “The government spends a portion of the income received from taxes on hospitals where medicines are distributed for free.” This means there is no direct connection between government expenditure and the taxpayer.
3. Expenditure on Public Interest = The government does not spend the income received from taxes for the specific interests of an individual or group. It spends it on activities that serve the public interest. In other words, the government makes expenditures with a focus on public welfare rather than private interests.
4. Payment by Individuals = An important characteristic of tax is that whether it is levied on goods, property, services, or any other item, the payment of tax must be made by the individual.
5. Legal Element in Tax = The government determines taxes under specific rules and laws. It does not fix taxes based on its wishes or arbitrariness.
6. Tax is a Sacrifice = In the present time, paying taxes is mandatory for every individual. Since there is no guarantee of personal benefit in return for paying taxes, the individual makes a sacrifice while paying. In other words, paying taxes is a moral duty.

Conclusion:
So, in today’s article, we have learned about what taxes are, the meaning and definition of tax, and the key features of taxes.

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