Concept of Tax
Features of Tax
- Taxes are the main source of government revenue.
- Tax is the compulsory contribution.
- Tax is imposed only by the government.
- Tax is a legal receipt.
- There is no quid pro quo in taxation.
- Tax payment involves sacrifice by the taxpayers.
- Tax is paid out of taxpayers’ income.
- Receipt from tax is spent for social welfare.
- Tax is one of the fiscal instruments.