Question

State any three characteristics of taxation.

Answer 1

Characteristics of Tax:
 A tax is a compulsory payment made to the government. People on whom a tax is imposed must pay the tax. Refusal to pay the tax is a punishable offense.  There is no quid pro quo between a taxpayer and public authorities. This means that the taxpayer cannot claim any specific benefit against the payment of a tax. Every tax involves some sacrifice on part of the taxpayer. A tax is not levied as a fine or penalty for breaking law.