Taxation System

A taxation system is how governments collect money from individuals and businesses to fund public services like roads, schools, and healthcare. It includes various types of taxes, such as income tax on earnings, sales tax on goods and services, and property tax on real estate. These taxes are usually based on the ability to pay, meaning higher earners may pay more. The collected revenue supports the functioning of government and community needs. Effective tax systems aim to be fair, transparent, and efficient, balancing revenue generation with economic growth and social equity.