MONEY MATTERS

A tax is a compulsory contribution from the person to the Government to defray the expense incurred in the common interest of all without reference to special benefits conferred.
In the ancient communities the members render voluntary services to support Government. For a long time after the fall of Rome, all rulers were supported by their own lands and compulsory dues from their subjects. The origin of modern tax system was properly found in feudalism. Feudal market dues, tolls for protection and the use of road, bridges and ferries, land rent and other payments in goods and services were gradually transferred into money payments with the rise of monetary economy. Rulers were linked to receive money and the people preferred to pay money instead of goods and services. Step by step the feudal revenue system changed to taxation.
In modern Government, the Government has to spend enormous money for national defence, agriculture, industrial development and other economic infrastructure facilities. To meet expenditure on such enormous range of activities the state need revenue, major part of which is raised through taxation of various types. People in order to lower their tax rates make deposits in the banks, certificates of deposits commonly known as cd are a way of lowering the tax amount. There has been both qualitative and quantitative change in the public expenditure due to the increase in outlay of Governments in public health, education, water supply, lighting facilities, unemployment relief and up- liftment of weaker sections of society.

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