Why Do Governments Impose Taxes | Why Do Government Collect Tariffs

Why Do Government Collect and Impose Taxes

Many governments like those in the Middle East Asia do not impose any tax on its citizens. If those governments can, then why doesn’t ours. Well the reason why government imposes taxes is because it needs to meet the expenses needed to run various services provided to citizens. Taxes enable the government to amass money and meet the expenses. Rich countries like Saudi Arabia and Oman do not impose taxes because the government has sufficient money to meet its expenses to run the country. And this it earns through export of oil on which the rest of the world depends entirely.

Taxes Enable A Government To Carry Out The Following Services:

  • Money earned from tax enable a government to build all the infrastructure projects needed to run the country. These include roads, railways, bridges, flyovers, subways, dams and lots more. Remember building is just not enough. Money is also needed to maintain these structures.
  • Maintaining public security department is also a big responsibility of the government. These include the police, the fire men and the army. Revenue earned through taxes helps to sustain these departments.
  • The government is also responsible for maintaining general services like Municipal and Council services. Inflow of money from imposed taxes helps to maintain these essential services. Likewise another major responsibility of governments is to provide quality health services. Along with medical services governments also need to provide citizens with medical insurances. All this entails enormous expenditure.

And the only way government can manage to meet the expenses is by collecting it from citizens. So, citizens need to pay taxes. The next time you grudge about taxes, remember you are contributing for the national cause. Everyone is bound to this cause.

About the Author

Sandra
I am working as Editor in Chief for Financeninvestments.com. Writing on Financial Topics is my passion. You can find me on , Seeking Alpha Instablogs or join our Facebook Community, s. FNI is a great Community for financial bloggers and writers. Get everything you wanted to know about your finance and investment related matters such as mutual funds, banking, retirement, economics and much more.

2 Comments on "Why Do Governments Impose Taxes | Why Do Government Collect Tariffs"

  1. veondja ngumbi | May 17, 2013 at 5:21 am | Reply

    why ministers they are nt taxed whle they are the 1 who gt alot money?

  2. i want to know more about tax system.thanks

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