Intergovernmental Tax Relations

Intergovernmental Tax Relations refer to the interactions between different levels of government—such as national, state, and local—in managing and sharing tax responsibilities and revenues. These relations determine how taxes are collected, allocated, and redistributed among various government levels to fund public services and development. Effective intergovernmental tax relations ensure that resources are distributed fairly, avoid overlapping taxes, and support coordinated fiscal policies, facilitating efficient governance and service delivery across a country.