Taxation Policy

Taxation policy refers to the government’s approach to collecting taxes from individuals and businesses to fund public services and infrastructure. It involves decisions on tax rates, what to tax, and exemptions. A fair taxation policy aims to balance economic growth and social equity, ensuring that everyone contributes to the common good according to their ability to pay. It influences spending, savings, and investment behavior, and can be used to address economic issues like inequality or to stimulate growth during downturns. Ultimately, effective taxation policy is crucial for a healthy economy and society.