The famous literature on fiscal principles has been incorporated into Adams Smith's “Fiscal Canons.” Since then, economies have adopted (and adapted where necessary) these basic principles for what is considered the most important tool of fiscal policy. Taxation is a mandatory levy imposed on the income, value of goods, and services of individuals, partners, and businesses by the government. It can be said that it is an approach aimed at imposing taxes on the citizen. This imposition of taxes is expected to produce revenue which is expected to be used in the provision of basic and substantial infrastructural services, both social and security, as well as creating conditions for the economic well-being of society at large. Aamir et al (2011) presented four main purposes of taxation, which include:1. Revenue collection for the government. This will provide for administrations, internal and external defence, maintenance of law and order and social services provided by the government.2. Altering wealth from high-income earners to low-income earners so as to reduce inequality.3. Impose duties on harmful goods such as tobacco in order to control consumption.4. The government's obligation to advocate for the entire public as it designs and manages the economy by shaping economic growth and development. TAX ELEMENT The two tax elements include: I. The tax base can be defined as the object charged. For example, the tax base for income tax is taxable income.II. The tax rate refers to the percentage of the tax base, which is settled in taxes. It is the tax charged by the government on the taxpayer's income. CLASSIFICATION OF TAX Tax can be classified according toA. INCIDENCE, which areI. Direct... at the center of the document... the distribution of wealth favors low income earners.5. Optimal taxes should depend on personal characteristics as well as income: relying on individual income as the sole source for determining ability to pay taxes is discouraged. Mirrlees (1971) suggests that other characteristics such as IQ, number of educational qualifications, age and color should be used to determine a taxpayer's ability. Other barometers called “Tagging” were proposed by Akerlof (1978) to complement the income-oriented tax system. This provided more information about individuals, which policymakers can take advantage of in determining fiscal responsibility.6. Only final goods should be taxed, and generally they should be taxed uniformly:….7. Capital income should not be taxed, at least pending:….8. In stochastic and dynamic economics, optimal fiscal policy requires greater sophistication:…..