Taxes are the only practical way to earn money to pay for government expenditure on the goods and services that the majority of us need. But creating an efficient and equitable tax structure is far from simple, particularly for emerging countries that want to join the global economy. The ideal tax system for these countries would raise the required funds without unduly taxing the general populace, stunting economic expansion, or deviating significantly from accepted worldwide tax practices. Due to the limited base for an income tax, the absence of contemporary methods of generating money, and the dearth of highly educated and skilled personnel, developing nations have difficulty building effective tax systems. Governments frequently choose the easiest route, creating tax structures that enable them to take advantage of any opportunities that arise, while statistical and tax agencies struggle to produce accurate data. Policymakers are unable to evaluate the possible effects of significant tax system changes due to a lack of data, which results in ineffective tax arrangements. In developing nations, income is not equally distributed, and fiscal measures that would raise the tax burdens of wealthy taxpayers are frequently blocked by their economic and political clout. This explains why many developing nations haven't utilized personal income and property taxes to their full potential and why their tax systems rarely achieve adequate progressivity. The design of the tax systems in these nations has not been greatly influenced by economic theory or the literature on optimal taxation. Because of the excessive increase in taxes and difficulty in paying them off, we should make the wealthy pay taxes as well and reduce the tax burden on partygoers. Conceptually, figuring out the ideal level of tax income is similar to figuring out the ideal level of government spending, but the literature on optimal tax theory doesn't offer much advice on how to combine the two in practice. Comparing the tax level to the average tax burden of a representative group of both developing and industrial countries is an alternate, statistically supported method of determining if the total tax level of a developing country is suitable. This does not, however, represent the "ideal" tax rate for any nation. Economic growth will frequently increase the demand for tax income to pay for an increase in public spending, but it will also improve the ability of the country to raise revenue to satisfy these needs. It seems dubious that an optimal level of taxation can ever be properly calculated given the intricacy of the economic process. To avoid intervention in the allocation process, the tax structure should be neutrally designed in emerging nations. The personal income tax rate structure is the most prominent policy tool at the disposal of governments in developing nations to demonstrate their commitment to social fairness and win political support. High personal exemptions as well as the profusion of additional exemptions and deductions that favor people with high incomes, however, substantially undermine the effectiveness of rate progressivity. Based on past experience, it is possible to increase effective rate progressivity by decreasing the degree of nominal rate progressivity, the number of brackets, and the number of exemptions and deductions. In the event that political obstacles prohibit extensive rate restructuring, substituting tax credits for deductions would nevertheless result in a significant increase in equity. In some countries, the top marginal personal income tax rate exceeds the corporate income tax by a significant margin, providing strong incentives for taxpayers to choose the corporate form of doing business for purely tax reasons. The symmetry and inclusion of sound tax policy are both broken here. The inclusivity principle relates to including an income stream in the tax net at some point along the length of that stream, whereas the symmetry principle refers to the equivalent treatment for tax purposes of gains and losses of any given source of income. Distorsions and injustices typically result from violating these principles.