Questions Personal and Family

What is the purpose and importance of taxation?

Airtract

Shivani Mehul

Be the exception

For the citizen of every country, paying taxes must be the priority. Every government needs the tax to make their country better and let people live peacefully and happily. Paying the share of tax can eagerly contribute to the growth and prosperity of your country. There are various types of taxes.

According to different sources, the government collects taxes based on a certain set of rules and financial regulations. Such sources include fees, charges, taxes, penalties, and different foreign charges. 

Talking about the whole concept of tax, it started for Great Britain in the year 1799 for collecting revenue to fight against France. 

Take a look at the Tax Essentials

  • The Tax Payer will not receive any special benefit in return after paying the tax
  • The Government spends the tax on the benefit and common interest of the people
  • It is paid by those people who have got a substantial income exceeding the prescribed money limit

Important of Taxation for Individuals And the Government

For an Individual

  • Owning responsibility

Every individual must take accountability to pay taxes if their income is surpassing the prescribed limit. They must know the importance of paying taxes and must not hesitate to pay it for the welfare and betterment of the nation. 

  • Keeping Accountable Income for the Government

By paying taxes, you can make a transparency with the government for every money you make. This is useful whenever you go ahead to buy a house, property or any barren land. 

For the Government

  • Major Funding Source

The government’s main source of fund is the inevitable taxes which they use for the betterment of the nation. It can make the country, developed, disease-free and prosperous. 

  • End Corruption

Black money is present in all countries though the number generally varies. The government should levy strict rules, gain taxes and gradually improve the country’s economy.

The main purpose and the importance of tax are to make human lives more comfortable. For the entire world, humans are the main driving force that drives the economy. Therefore, if everyone learns the importance of taxation, people can pay them and learn to help the government in different ways.

Read more:  What happens if you don't file your taxes?

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