Nuffnang

Wednesday, 17 June 2015

OBJECTIVE OF TAXATION

Taxes are what we pay for a civilized society’ (Justice Holmes)
Taxation :
Avenue for government to raise funds to finance public expenditures, such as healthcare, education and national defence.
Principal means by which governments can attempt to redistribute of income and wealth in building a civilized society through various social allocations.

It then redistributed amongst the public in such a way to build public amenities, and to provide support to pensioners, the unemployed, the sick & the welfare beneficiaries.
Taxation acts a tool of good governance, allowing economies to grow while helping to improve society as a whole.
Moreover, taxation also used to broader socio-economic purpose (for e.g. to maximize economic stability in order to reduce inflation, unemployment, etc.)
Therefore, it is meant for revenue, growth and equity.

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