Q.State any three characteristics of Tax.

A tax is a compulsory, no-direct-return payment to the government, levied for the common good.

Any three characteristics of a tax:

1. Compulsory payment: a tax is a compulsory contribution imposed by the government; no one can refuse to pay it on the ground that he receives no benefit.
2. No direct quid pro quo: there is no direct relationship between the tax paid and the benefit received; a taxpayer cannot demand a specific service in return for his tax.
3. Levied for public/common welfare: tax proceeds are spent on general public purposes such as defence, administration and welfare, benefiting society as a whole. …