Importance of Taxation

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We Filipinos often disregard the value of tax. We always complain whenever we compute how much tax are deducted in our salaries. So to make you feel better I will give you a small list of Importance of Taxation which I read in our Economics book.

Through tax, citizens can contribute and give their fair-share to the cost and expenses of government in order for the state to:

  1. Raise revenue
    – No government can exist without it, it cannot promote the welfare of the people.
  2. Protect locally produced goods against competition from import by imposing higher custom duties.
  3. Protect new industries by granting tax exemptions.
  4. Regulate property.
  5. Distribute equally the wealth of the nation.

Credits: “Introduction to Economics” by Roman D. Leano, Jr. and Ronald M. Corpuz.

2 responses »

  1. tax is very important in all country because the money that the government gained to these taxes are being use to build roads, buildings for school, hospital and more….
    without these taxes the country will never be improve!!

  2. it’s just so bad that the taxes that the citizens paid are not all used for such things. they are used by those who are in position for personal..

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