Only reasons why government must import tax!

[Mellorando]

There are many reasons why government or its agencies in post Taxas an individual or corporate bodies.Tax is known to be used to improve the economy of a country the reasons for the imposition of tax include:

1. To raise revenue :
taxes are used to raise revenue for the government through this money required for the provision of essential services general administrative purposes and financing of capital projects and may develop.

2. To redistribute income:
Through the pay as you earn (P.A.Y.E) system government can narrow the gap between the rich and the poor by introducing progressive taxation.

3. Discouragement of production and consumption of harmful goods:
taxes are used to discourage the production and consumption of harmful goats indirect taxes imposed can lead to higher prices which can discourage the consumption of certain goods

4. To control inflation: taxes can be used as anti-inflationary device government can do this by increasing directors without increasing its expenditures.

5. to promote infant industries:
taxes can be used to promote newly established industries from competition with foreign firms.

6. To correct an adverse balance of payment:
taxes are used to correct an adverse balance of payments importation of foreign goods could be restricted by the use of heavy import duties thereby conserving foreign exchange this will have effects on balance of payments.

7. Prevention of dumping:
taxes are used to prevent dumping by the imposition of high import duties on foreign-made goods dumping is a condition in which goods are sold abroad as cheaper price than are sold in the country in which there are produced. Don't be in real's local industry easily.

8. Direction of production and investment:
taxation can be used to direct production and investment example tax exemptions or rebates for industries located in rural areas

9. Promotion of economic growth:
Taxes can be used to promote economic growth government can reduce taxes on company profits so that those profit are ploughed back into business to aid expansion and stability.

10. Retaliatory measures:
Transition can be used as a retaliatory measures in international trade.

11. Employment purpose:
government can manipulate taxation to achieve the desired employment level.

12.Savings:
that section can be used to encourage savings and investments

 

[Deleted member 28127]

The country imposes tax if you have saved more than a fixed amount of money means even with saving account with the big quantity of money you pay yearly tax to the state means profitable for little saving, not big saving.

 

[Moni]

Before any country can develop, the government need to collect tax. That way it is also important for government to establish more businesses so that tax can be collected from employers.

Imagine half of the people in the country have no job or they are unemployed how can the government collect tax from them?

 

[btaliat]

To be frank, the poster has exhausted the main reason tax, a compulsory levy is imposed on its citizens that are legally allowed to pay tax.

The main reason is just to generate money for government to run its administration. Government may be in dearth if no money is raised to carry out some of the projects that will be of benefit to the citizens.

However, government should be careful while levying tax on its citizens as there are some citizens that are not economical bouyant to pay tax despite the fact that they are working or fully employed. This has made government to introduce various forms of tax payment that will include VAT and PAYE.

There should be awareness on tax payment. Most citizens don't even know the essence of this tax. They only see it as a means by which government exploit the citizens hence they prefer to evade the tax payment. There is need for the citizens to be carried along on how the tax he's paying is being spent or used. This will give them more reasons to pay the tax as and when due.