Collection of Taxes.
Taxes are the funds that individuals have to pay for the services they receive from the government and they are always involuntary.
Taxes are considered as the source of the governments monetary power, this s because they are the major source of income for the government, his is the reasons why the government puts a lot of regulations on the payment of tax so as to protect it.
In every activity that individuals engage in that is resulting to income is always taxed this might be in a companies, employment and business, also when we are buying products they always have an additional cost of tax from the original sale price such as while buying a car or a cloth in the shop.
One important thing to note about taxation is that despite the fact that individuals have to pay the taxes, some companies are always asked not to pay the taxes due to the services they offer, this mostly is in the food production sector and the humanitarians since their aim is to help the citizens.
The government uses a lot of different methods to correct the taxes such as PAYE which refers to pay as you earn and others, in some methods like PAYE individuals do not pay the same amount of money for the tax.
After the taxes are collected they are used in many used by the government to ensure development of the country some of the uses of tax are as follows.
Subsidies, this is where the government uses the tax to pay a particular percentage of the money for the goods that individuals consume so that they are affordable to them, this is usually mostly done to the food staffs.
There are a lot of facilities that the government builds using the taxes that are meant to improve the lives of the individuals some of them are; construction of public schools and road construction and maintenance.
Sometimes the government spends money on educational systems to ensure that it is affordable to them this money spent is from the tax pool.
The government also uses the money collected to pay the state workers such as the police, military, and other administrators.
Charity, this is where the government uses the taxes to help the needy people this might be individuals outside the country or those that are citizens an example is when there is a national calamity on a neighboring country and it helps in the recovery of the affected people.
Not paying tax is a crime and when one commits it he/she may be forced to pay a particular amount of money or go to prison.
The government is always held accountable to say the amount that was collected from the people and how it was spent.
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