A comparative study of tax structure of india with respect to other countries
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1) India :- India has a three tier tax structure where taxes are levied by Central Government, State Government and Local Authorities like Municipal Corporations. In India, the authority to levy a tax is received from the constitution. In constitution there is clear demarcation of respective taxes to be collected by centre and the states. Article 265 of the Indian Constitution states that “No Tax Should be levied without the authority of Law”. Hence abiding to the constitution, every tax in India is backed by its respective accompanying law passed by either parliament or state legislative councils. In India , the taxes are classified as Direct Taxes and Indirect Taxes.
2) USA:- The United States of America is has its autonomous state and local governments. It is a federal republic country. Taxes in USA are levied by both autonomous state and the local governments. The taxes include, taxes on income, property, sales, capital gains, dividends, estates, gifts and imports. The Taxation System followed in USA is Progressive Tax System. Taxes are incurred on incomes of the individual. The reliance on direct taxes is more than the indirect taxes
3) UK:- In the United Kingdom, Taxes is levied at two levels i.e central government and the local government. Income tax, VAT, Corporate tax, Fuel duty etc. are levied by central governments. Business rates, Council Tax, street parking charges etc are collected by local governments. In addition local governments also receive grants from funds of central government. Taxation in United Kingdom is simple and easy to understand with high administrative efficiency.
4) South Africa:- Similiarly like united kingdom, taxation in South Africa is also levied at two levels i.e central government and local government. South African revenue services (SARS) acts on behalf of state government for the collection of taxes. Income tax, Corporate Tax, Vat and fuel duty are collected by central government whereas local government collect municipal rates and funds from central government.
5) Mexico:- In Mexico Taxes like Income Tax, Corporate Tax, Alternative minimum tax are charged. Income Tax in mexico is progressive i.e from 1.92 % to 30 %. Corporate Tax rates are 30 %. Alternative minimum tax is 17.5 %. Capital gains are added to regular incomes and regular income tax is charged over them. 6) China:- China being an communist country following the principles of socialism depend largely on the taxes for its revenue sources. Tax is the important element of the macro economic policy of china and has a high impact on socio-economic conditions in china. From the reforms in 1994, china has a well structured taxation system. There are currently 26 Types of taxes in china which according to their nature can be divided into the following 8 categories: Turnover Taxes, Income Taxes, Resource Taxes, Taxes for Special Purpose, Property taxes, Behavioral Taxes, Agricultural taxes and Custom duties.
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