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Why Every Country Has A Different Taxation System?

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    Every country has a different taxation system. The major reason for the different taxation system in different countries is the economic stability. Every country has different economic stability according to which the taxation standards are defined. Another factor in this regard is the average personal income in any country. If the average personal income of a country is more, it may implement more tax than the country in which average personal income is relatively less.

    One more point which effects the taxation is the major industry of a country. Each country has a different strong industry. For example china has very strong electronics industry, Pakistan has very sound textile industry, India is dominating in IT sector, and Germany has a very good automobile industry.

    Each country tries to provide maximum facilities to its major industry. So policy of the country is to provide the maximum facilitation to the stable industry so that they provide the maximum revenue to the state. That's the reason why a common taxation system can't be applied all over the world. I hope that I have clearly described the question. If still you are not satisfied, you can consult the revenue department for the further information.
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    Aib536pk 

    answered 3 years ago

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