There is the vest need for the government to accumulate better sum of revenue inorder to be able to provide essential goods and services.Taxation is a sum of money(funds) which government of a country complusorily collect from the citizens of a country without giving any direct benefit inreturn.
Direct Tax; is taken directly from the payers income. for instances:Income tax,Rent tax,Company tax,Capital gain tax and Mineral royalties which is tax imposed on by government on firms engaged in the exploitation of minerals in the country.
Indirect Tax: are taxes paid by consumers by purchasing goods and services on which the seller had originally added the amount of tax of the goods.
These includes the following:Purchasing goods and services on which the seller had originally added the amount of tax of the goods. these includes the following:Purchase tax,Sales tax,Advertisement tax,Service tax , import tax, Service tax, Value added tax. just to mention a few.
Valued Added Tax is a general tax on consumption expenditure.This means the VAT is a tax paid by consumers when they buy goods and use certain services.it is a small amount of money paid out to the government when ever a specified article is bought or a specified services is given to a consumer.
it is charged as an addition to the price of supplies at all stages in th chain of production and distribution. and it means charging the form of the nature of any raw material in to a newer product thereby making it sell at a higher product than it was originally purchased.
Good Taxed Under Value Added Tax includes: Imported items,Manufactured items,Wholesale items,Retail items,and Provision of services, just to mention a few.
Taxation is very important and essential to enable the exploitation of research,experimentation and the facilitation of progressive national developmental Projects for massive transformation and Advancement.
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