<p>The evolution of a country’s tax system is primarily influenced by changes in its economic structure and the government’s diverse social, economic, and political objectives. The capacity to administer taxes and the institutional support (such as legislative, executive, and judiciary bodies) also vary between countries, depending on their levels of economic development. As the economy expands, a broader range of potential tax bases emerges, and the importance of different tax sources shifts over time. Moving from traditional practices to a modern legal framework involves a complex interaction of economic motivations, political structures, and the administrative and institutional design of a country’s tax system. Social factors—including social capital, norms, ethics, and polarisation—affect tax morale and, consequently, tax compliance. Furthermore, societal expectations of the government are primarily shaped by the level of social cohesion and economic development. The need for public spending influences the taxation system in terms of its base, rates, and efficiency. The political economy of taxation is crucial, alongside economic, social, and institutional factors, in driving these changes. This study presents a thematic model encompassing all factors influencing the development of tax structures. We critically examine the political economy effects on taxation, drawing on recent empirical studies from both developed and developing nations, as well as democratic and non-democratic contexts. Identifying the political factors influencing taxation policy, administration, reforms, compliance, and expenditure could aid in reducing political interference. The research also identifies gaps that can guide future scholarly efforts in this field.</p>