Understanding the concept of taxation
Tax refers to the financial responsibility imposed on individuals or businesses, compelling them to remit funds to the government in aid of its functions. The assessment of tax is contingent upon the earnings, possessions, and undertakings of the individual or entity. Payment of tax can be made either in currency or by offsetting amounts from other dues owed to the government. Taxation stands as a significant contributor to governmental income and serves as a pivotal element within a nation's fiscal framework.