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Contemporary Taxation | Why taxes are charged | Type of Taxation | Advantages of Taxation

Contemporary Taxation By Saba Naqvi What contemporary taxation means? What are the major objectives of taxation? What are types of taxation? What is the advantage and disadvantage of taxation? What is purpose of taxation? What are the reasons for taxation? Why is tax so important? Is Taxation good for the economy? Contemporary tax systems is determined by a series of factors such as: economic development, social and economic regulation, methods of financing social welfare, level of openness of economy towards other countries, the character of the regulation of the state, membership in particular international organizations, tradition and economic development, etc Taxation policy has some non-revenue objectives. It affects the total volume of production. Direct taxation - this is taxation on income. This covers taxes like income tax profits tax and wealth taxes on inheritance. Indirect taxation - this is taxation on expenditure. This covers taxes like VAT, excise duties (tax on cigarettes, alcohol etc.) Advantage and disadvantage of direct and indirect taxation