Tax policy is a general statement of intention which guides the thinking and action of all concerned toward the realisation of the set goal. (ICAN study pack, 2019)

It can also be defined as a statement set up by the government to pursue tax revenue that will meet the current goal or budget of the country.

Key Explanations

It is a statement of intention. Most tax intentions are to collect taxes from citizens in a cost-effective manner. The intention may also include shifting the tax burden from the poor to the wealthy citizens. And to ensure that the procedure for collecting taxes is easy for taxpayers.

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