Define the term ‘tax’. - Vidyadip

Question

Define the term ‘tax’.

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Answer

A tax is a legally compulsory monetary contribution to the government by different economic units such as household, firms and other economic units. Taxes are imposed by the government on different activities, income, property, production, occupation, etc. The main motive of imposing taxes is to raise revenue and to incur various expenditures for enhancing welfare of the country.

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