Taxation is the essential rule of the state to impose and demand contribution upon persons, property, or rights for the purpose of generating revenues for public purposes.
On the other side, taxes are enforced proportional contributions from persons and property levied by the law-making body of the state by virtue of its sovereignty for the support of the government and all public needs. In every country in the world collect their revenue through taxation. Taxation is a system of raising money to finance government. It is a compulsory contribution and no one can run from paying tax. Governments usually use tax revenues to build roads, to operate schools and hospital, to pay police and for other purposes. Without taxes to fund its activities, government could not develop the country.
There are numerous types of taxes such as income tax, service tax, property tax, and others. In Malaysia, the government has introduced a new tax which is tourism tax. Tourism tax is a tax charged to the hotel guests that spend a night at the hotel. There are also the advantages and disadvantages of the taxation system. But if we look at the good side of tax, it actually gives us lots of benefits. However, tax is one of the biggest sources of revenues for the government to develop the country.