What "tax" means in finance

A tax is a financial charge or levy imposed by a government on income, goods, services, or transactions to raise revenue to fund public projects, services, and infrastructure. Taxes can be imposed on individuals, businesses, and other entities and can be direct or indirect. Direct taxes are levied on income, property, or wealth, while indirect taxes are included in the price of goods and services, such as sales taxes or value-added taxes (VATs). Taxes are an essential source of government revenue and are used to finance public programs and services, such as education, healthcare, and defense.