This work tried to find out importance of taxation to improve the economic growth and peaceful implementation of tax policy so as to aid small and medium business to have a better understanding of tax in Delta State. The researcher also looked at the problems of revenue generation through taxation, the extent to which such revenue is utilized to ensure aggregate economic development. In order to achieve the above, various literatures were reviewed hypothesis were formulated. The researcher employed both primary and secondary method of data collection, through questionnaire, internet, journals, textbook etc. while data collected were analyzed using a non- parametric statistical (chi- square (x2)] to analyzed and test the hypothesis formulated. The study reveals that the tax system is inadequate in promoting information on the income of self employed workers and businessmen. It concludes that in order to enhance taxation in delta state, tax policies on work should be addressed so that revenue from such sources can be imposed. It therefore recommends that government should be transparent in tax matters so that members of the public can have confidence in them.