Definition of taxation

The word "taxation" originates from the Latin words "taxare," meaning "to assess" and "atio," a suffix forming nouns indicating action or process. The Latin term "taxatio" referred to the act of assessing or estimating the value of something, especially for the purpose of levying a tax. The English word "taxation" was first recorded in the 14th century, derived from the Old French "taxacion," which itself came from the Latin "taxatio." Initially, the word referred to the process of assessing a tax or duty, but over time it has come to encompass the broader concept of government revenue collection and the breadth of fiscal policies and regulations that govern it. Today, "taxation" encompasses a wide range of activities, including setting tax rates, collecting taxes, and implementing tax policies to fund government activities and services.