Tax | What is tax | Types of taxes | Direct tax & Indirect Tax

What is tax

Tax is basically a compulsory fees charged by the Govt. on the person and on the supply of goods. When it is levied on person it is income tax and when levied on consumption of goods it can be either goods and service tax or can be called custom duty. In either ways purchasing power of the person decreases. But why Govt. need to collect tax. It collect tax to re-distribute for the larger goal and benefit of the country. Rich pays more tax than the poor. Direct tax follows source basis or resident basis of taxation whereas Indirect tax follows consumption principle of taxation. That's the reason import are taxable and exports are not taxable.