5 Characteristics of Taxation are listed and explicated in this article. We hope you find it informative and able to meet your research needs.
Characteristics of Taxation
Read Also: Reasons Why Government Impose Taxes
Before we look into the features of taxation, we will briefly define the word ‘Taxation’ so that we can get a better understanding of the subject matter.
Taxation is defined as the act or process by which a stipulated amount of money is imposed by the government of a country or relevant agencies on an individual, corporate organization, or specific goods and services.
Features of Tax
Read Also: Punishment for Tax Evasion in Nigeria
Below are the Features of Tax:
- Tax is a compulsory levy that must be paid by every working person or corporate body; as long as you earn money within that particular area.
- It is usually levied by the government or its agencies, not a single individual looking for his daily bread.
- It is a kind of payment that is made as a sacrifice for the growth and development of the country.
- Although it is paid to the government, it is equally meant for the general welfare of everybody. It is what is used for the development of the country.
- Tax payment has age restrictions, to become eligible to pay tax, a person must attain a certain age without which it is a scam.
Read Also: The Importance of Taxation in Nigeria
Not all taxes levied upon people are of good standard or quality, in most countries, the government put pressure on its citizens just so that they can achieve only some goals, they do not put the effect of the pressure on the citizens into consideration.
They bring up huge taxes which are quote unaffordable and make the citizens suffer unduly. To this end, it is important that we look at some principles of a good tax system.