Tax Crisis

A tax crisis refers to a situation in which a government faces severe difficulties in collecting taxes, leading to significant budget deficits, fiscal instability, or heightened public unrest. This crisis can result from various factors, such as economic downturns, widespread tax evasion, ineffective tax policies, or changes in political leadership. During a tax crisis, governments may struggle to fund essential services and obligations, resulting in spending cuts, increased borrowing, or the introduction of new taxes. Tax crises can also provoke public protests and debates about the fairness and effectiveness of the tax system, ultimately impacting social and economic conditions within a country.