What Does Levy Taxes Mean?


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Yooti Bhansali answered
To levy a tax means to impose a duty or a financial charge on a person or any other legal body by the state, or a functioning counterpart of the state. Imposition of taxes could also be carried out by a body that is sub-national.

The levied tax may be in the form of direct tax, or it may be indirect. It may be settled in the form of monetary payment or labour. Capitalist tax systems generally levy tax to pay in the form of money, while in-kind payment is found in pre-capitalist states and their counterparts.

In the United Kingdom, Inland Revenue executes the collection of taxes. If it so happens that the taxes are not paid, a penalty, may be in the form of a fine, is levied against the said individual. Non-payment of taxes to a high degree can also leads to imprisonment.

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