A compulsory transfer of money from private individuals, institutions or groups to the government.
It may be levied upon wealth or income (direct taxation) or in the form of surcharges on prices (indirect taxation). It may be paid to the central government (central taxation) or to the local government (local taxation). Taxation is one of the principal means by which a government finances its expenditure, including health care systems.
Last update: 30 June 2023
Source: Penguin Reference, updated by PPRI