V3I2P41

Effectiveness of Taxation in Comparison with Other Nations of the World

Vidyashree V^1*, Kavana M², Dr. Kanchan G. Rajput³

Abstract

This study examines the effectiveness of taxation in comparison with other nations of the world, focusing on how different tax systems contribute to government revenue, economic growth, and public welfare. Taxation plays a vital role in funding public services and supporting national development, and its effectiveness depends on factors such as tax structure, compliance, administration, and transparency. The study compares taxation systems of developed and developing countries, including United States, Germany, and India, to identify key differences in tax collection efficiency and compliance levels. It also highlights the challenges faced by developing nations such as tax evasion, informal economy, and limited tax awareness. The research emphasizes the role of digitalization and tax reforms in improving tax effectiveness and concludes that a fair, transparent, and well-administered tax system is essential for sustainable economic development and improved quality of life.

Keywords:

Taxation, effectiveness of taxation, tax system, tax compliance, tax revenue, economic development, public finance, tax reforms, global comparison, and developed and developing countries.