CHAPTER – I
INTRODUCTION
1.1. Background
Taxation in Nepal has a long history. Before unification of the country, small states used to levy taxes on economic activities mainly to strengthen the military forces and to cover the administrative costs. The then taxes used to be imposed in kind. Since its unification in 1768, the state imposed various types of taxes. However, most of those taxes were imposed on land, agriculture and agricultural products. Few businesses were there and the taxes were imposed on the business centres in various parts of the country. During Rana regime (1846-1950), the tax system was based on the directives and notices issued by the rulers. After the democracy was established in 1950, the governance system was changed
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It was existed during ancient era too. The “Arthashastra” had written by then Economist Kautilaya outlines various aspects of taxation. The book explains about the taxation of that time. The taxation system in Kautilaya’s time was seemingly scientific and people oriented. The areas of taxation were also nicely defined and the process to collect taxes was also dealt nicely. As the economic theories of Kautilaya’s era were dominant in the oriental economy, Nepal was also guided by some of those principles. However, during course of time several changes were made in the taxation policies. Although some of the provisions of then taxation system are quite relevant these days too, they have rarely been practiced in Nepalese tax system. Thus it is necessary to observe the implacability of that tax system in the present tax era in Nepal.
Nepalese tax system is sometimes blamed as inefficient and ineffective. Given the economy base, the revenue collection is often blamed to be at the lower side. The tax administration is also blamed to be non-friendly and majority officials being traditional mindset. It is often said that the reform initiatives are not sufficient and the tax system as a whole needs massive reform. In these backdrops, the overall issue of Nepalese taxation has to be dealt with and compared to Kautilaya’s tax system on its implementability.
1.4. Objectives of the
“I don’t know anyone who has a period that thinks of it as a luxury,” states Youtuber Ingrid Nilsen during an interview with president Obama. Most women would agree with this statement, yet it has recently become a controversial issue in the world of paying taxes. Menstrual products are taxed as a luxury item, which has women advocating for the removal of the nicknamed “pink tax”. This pink tax perpetuates an unjust taxation on medical products necessary for the public health and dignity of American women. First, there must be clarification as to what the pink tax is to understand why menstrual products are subject to a sales tax.
There are several key constitutional principles, such as popular sovereignty, federalism, republicanism, individual rights, and so on. The United States is a democracy and residences are considered the source of the government powers. Since America is well known for freedom, it is obvious that the government does not have powers to control everything. Limited government is another type of the constitutional principles as well.
Economic Injustice in America "Class is for European democracies or something else--it isn't for the United States of America. We are not going to be divided by class." -George Bush, the forty-first President of the United States (Kalra 1) The United States of America was founded on the basis of a "classless society of equals," committed to eliminating the past injustices imposed on them by Great Britain.
The Constitution Act of 1982 was a landmark in Canadian history, establishing the Charter of Rights and Freedoms in the Constitution and completing the unfinished business of Canadian independence, which allowed Canada to amend its constitution without British approval (source). While there were many pressures from inside the state in favour of constitutional change, such as the desire for autonomy from Britain, one major influence on this reform was pressure arising from the Quiet Revolution in Quebec, highlighting the French-English divide in Canada. As Prime Minister Pierre Trudeau juggled the concerns of all the provinces, Quebec’s claim to be recognized as a distinct society escalated into a tug-of-war with Ottawa, resulting in the province
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
Democracy has been the root of a limited government, the system of which government powers are distributed so that one group of leaders do not have too much influence. The limited government has been structured to keep peace amongst all parties that are involved in the government. And under the U.S. Constitution, citizens are given ultimate power by their right to choose their representatives through the democratic process of voting. Each levels of the government are limited as they have their own responsibilities. The city government has the most local level of government as the residents elect a city council and mayor to represent their interest at the city level. All city governments establish housing and health regulations, and are responsible
Taxation can be taken as a major type which helps to increase the income of a country. In Australia too, taxations are asked to pay not only for the local state, but also for federal governments. It can be paid as personally or as a company.
The purpose of this paper is to illustrate the layout of taxation. I will differentiate the types of taxes and the roles that they serve currently. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Lastly, I will conclude how the EEET applies to the four tax types.
Did you know that taxation can be many items like sales taxes, income tax, gift tax, but it can also be a pain because of taxation without representation? “ Mark Twain once said that there were only two things in life that were as certain as the dawn; death and taxes.” (Taxation, par. 1)
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
Distinguish clearly between the Income and the Substitution Effects of a change in the Price of a Good. Under what Conditions will the Income Effect and the Substitution Effect act in Opposite Directions?
The Canons of Taxation is associated with the tax rate, method and its collection. A better way to define canons of taxation is the properties or features possessed by a good tax. These features are recognized as canons of taxation only if applied to a solitary tax. The mixture of different taxes with different canons included is deemed a good tax system. Hence, canons of taxation are used by the governments to collect and impose taxes. The process of taxation increases government income but there is also a downside to it. The government’s investment might be affected in a negative way. A balanced strategy should be developed by the government before the socioeconomic activities in the country are badly affected by the aftereffects of taxation.
...ruggle or in some cases continue to struggle if this tax was a continuous one. This tax is aimed at helping the disadvantaged and creating equality within our country and with the help from this tax our country would be on its way to moving forward to that step. The Khulumani Support Group welcomed this “wealth tax” in a statement that set out fair steps that should be taken by government officials to put this wealth tax in place. Their steps are not only fair but are also logical, wanting at least R2 billion for 5 years thus when divided up providing R2000 per month to the amount of victims that are estimated at around 120, 000.
In 2009-10, the non & tax revenue contributed was about 22% of total revenue of Central Government and 2% of GDP. The main sources of non & tax revenue are as follows