taxation

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taxation,

system used by governments to obtain money from people and organizations. The revenue collected is used by the government to support itself and to provide public services. Aside from being relatively permanent, taxation is compulsory and does not guarantee a direct relationship between the amount contributed by a citizen and the extent of governmental services provided to him. An enforced levy to meet an emergency (e.g., capital levycapital levy,
form of taxation by which the government takes part of the capital of any person or business, as distinguished from a tax on personal or business income. It is usually applied to all capital above a certain minimum and may be set aside for a specific purpose, such
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) is distinguished from taxation as not being part of a long-term system; fees for special services, such as postage, are not taxes. A government may secure its revenue without taxation, as from natural resources, manufactured products, or services. Taxes are sometimes resisted when those who must pay them consider them too onerous or unfair; such resistance was one of the causes of the American Revolution. Ease of collection is considered a merit in a tax, and ability to pay is one test of the amount that an individual should contribute. Such a progressive levy is the U.S. inheritance taxinheritance tax,
assessment made on the portion of an estate received by an individual; it differs from an estate tax, which is a tax levied on an entire estate before it is distributed to individuals.
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. A general property tax formerly met requirements in the United States satisfactorily (see land taxland tax,
impost levied upon real property. It is sometimes called a real estate tax, especially when assessed against both improved and unimproved land. Probably the earliest direct tax and formerly the chief source of government revenue, it was known in ancient China and Egypt.
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); but as property increasingly assumed forms that escaped taxation, the burden on farms, once the usual form of property, became more than they could carry. A tax on luxuries is free in part from such an objection, although a luxury to one person may be a necessity to another. A modern variation of the sales tax is the value-added taxvalue-added tax
(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level.
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. Tarifftariff,
tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic industries
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 duties have occasioned great debates on protectionprotection,
practice of regulating imports and exports with the purpose of shielding domestic industries from foreign competition. To accomplish that end, certain imports may be excluded entirely, import quotas may be established, or bounties paid on certain exports.
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 and free tradefree trade,
in modern usage, trade or commerce carried on without such restrictions as import duties, export bounties, domestic production subsidies, trade quotas, or import licenses.
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. Increasing use has been made of the graduated income taxincome tax,
assessment levied upon individual or corporate incomes. Although personal incomes were occasionally taxed in medieval Italian cities, the income tax is essentially a modern form of taxation.
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. Excise taxes, as on tobacco and alcoholic beverages, encounter little resistance; when too high, however, they may encourage bootlegging. A single taxsingle tax,
any levy that serves as the government's only source of revenue. Generally, however, it is understood to mean a tax derived from economic rent and used as the sole source of public receipts.
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 on land is advocated by the followers of Henry GeorgeGeorge, Henry,
1839–97, American economist, founder of the single tax movement, b. Philadelphia. Of a poor family, his formal education was cut short at 14, and in 1857 he emigrated to California; there he worked at various occupations before turning to newspaper writing
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. Increases or decreases in taxes or changes in the types of taxes levied are often used to regulate a nation's economy. See tax exemptiontax exemption,
immunity from the requirement of paying taxes. Federal, state, and usually local law provide exemption from taxation for a wide variety of organizations, usually not-for-profit, such as churches, colleges, universities, health care providers, various charities,
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.

Bibliography

See Dick Netzer, Economics of the Property Tax (1966); J. F. Due, Government Finance (4th ed. 1968); C. S. Shoup, Public Finance (1969); H. M. Groves, Financing Government (7th ed. 1973); C. Webber and A. Wildavsky, A History of Taxation and Expenditure in the Western World (1987).

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taxation

compulsory levies by central or local governments. Taxation takes many forms, e.g. on personal wealth and income, on corporate income or profits, on the purchases of goods and services, on imports and exports. A major general distinction
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000
References in periodicals archive ?
He said the business community was paying many kinds of taxes but the government was yet to bring the Afghan traders into tax net, and as a result, Pakistan's foreign exchange and national economy was suffering.
HTBA in their proposals demanded for the slashing of GST in KP to single digit as, they were of the view that, tourism industry which needs encouragement as one investor doing same type of business in other parts of the country run business for whole year while hotel and restaurants running their business in hilly areas do business only for 120 days and face at least 14 kinds of taxes and different departments make the hotel industry owners as rolling stone.
The Auto sector of Pakistan is also among the top 3 contributors to the Government's tax revenues, as approximately 34% of the cost of locally produced cars is paid in the form of various kinds of taxes.
27, 'the entire gross gaming receipts/earnings or the agreed or predetermined minimum monthly revenues/income from gaming operations under existing rules, whichever is higher, shall be subject to a franchise tax of 5 percent, in lieu of all kinds of taxes, levies, fees or assessments of any kind, nature or description.'
New kinds of taxes and payments that will reach the budget will amount to 11.584 billion som, including the following: 1) revenue tax (+11%) - 5.
The MOF is setting sight on speculators who purchase presold houses and sell them making a killing, even before those houses are constructed, thereby evading all kinds of taxes. The MOF official noted that in the future taxation agencies may check the actual transaction prices for such dealings and use them as the basis for levying land value increment tax, rather than on the basis of government-assessed current value.
Some mix different kinds of taxes, which can be fairer to the elderly and those on low incomes, but can also make local government more democratic.'
The NOD will schedule the kinds of taxes asserted to be due and the proposed adjustments by calendar quarter.
They demanded of the government to abolish all kinds of taxes in Malakand division as the area was exempted from all levies.