Let's Talk Tax Collection and Spending!!
Tax collection and spending are two of the most fundamental tasks for any State and is as old as civilization. It represents one of the most direct forms of coercive power of the State. From ancient monarchs to modern democracies, every citizen has accepted the fact that taxes are the only constants after life and death! In a well-meaning State apparatus, expectation is that the state would establish systems to collect and spend the Tax that would give a sense of justice/equality for majority of citizens. If the state is not efficient in either or both fronts, it ends up creating resentment in everyone. As we move towards more modern form of governance, there are certain parameters to evaluate a tax collection system - Tax Type - There are two broad categories - Direct (tax on income) and Indirect (tax on Spending). Income Tax and corporate Tax falls under Direct Tax Umbrella while GST, Customs duty etc. would fall under later. Tax Input Base - How much of your...