What is a levy in the context of taxation?

In the context of taxation, a levy refers to a formal legal process through which the government collects taxes, fees, or other debts owed by an individual or entity. This process can involve the seizure of property or assets if the debts remain unpaid. When a levy is imposed, it typically means that the tax authority has taken action to claim property to fulfill a tax obligation, ensuring that the government receives the revenues necessary for public services and infrastructure.

Understanding a levy as a method of collecting debts through property seizure highlights the enforcement aspect of tax collection, distinguishing it from other financial concepts such as trade barriers, corporate income taxes, and subsidies. Each of those alternatives relates to different aspects of economics and government policy but does not reflect the specific legal action associated with a levy in tax law.