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An amount of fee charged by government on any product, income earned, or activity is called tax. If tax is levy directly on a personal or any corporate income is known which it known is a direct tax. Tax is levy on price of good and service, this is called an indirect tax. The biggest purpose of taxation is to earn finance for government expenditure. The most chief uses of taxes are to finance public goods and services, such as lighting keeping the road and parks and street cleaning. In view of the fact that public goods and services do not let a non-payer to be disqualified, or allow elimination by consumer, a market cannot be without the good or services, and so they need to be provided by the government or through government agency, which be likely to finance themselves largely through taxes.
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