The government of every country collects a lot of money every year by imposing various types of taxes on its people. These taxes are mainly divided into two parts - Direct Tax and Indirect Tax. Direct taxes have to be paid personally. Income tax, wealth tax, property tax, gift tax etc. are some examples of such taxes. Indirect taxes include sales tax, customs and excise, stamp duties, road tax, etc.
Do you know why we have to pay these different types of taxes and where does the money collected from them go ?
Through the money collected by taxes, the government provides essential services for the people of its country. For the benefit of the public, the government does many things, such as opening hospitals for patients, schools, colleges and universities for education, police services, construction of parks in cities and towns, development of transport facilities, defense and communication system. install etc. All these works require money. The money collected from the public in the form of taxes is used for the development of all these works.
According to the increasing population, it has become necessary to increase all these facilities. The need for funds has also increased for the expansion of these facilities of the public. This is the reason why governments have to increase the rates of taxes. Tax experts keep advising the government to impose new taxes. No government can provide essential services to its people without taxes.
