Why are Taxes Imposed

 Everybody is obliged by law to pay taxes. Total Tax money goes to government exchequer. Appointed government decides that how are taxes being spent and how the budget is organized.

Tax payment is not optional; an individual has to pay tax if his/her incoming is coming under the income tax slab. It is a duty of every citizen to pay taxes. More collection of tax allows the government to launch more and more welfare schemes.

Let's look at the reasons why do we pay taxes?

1) To Provide Basic Facilities for Every Citizen of the Country: Whatever money is received by the government in terms of direct tax and indirect tax is spent by it for the welfare of the citizens of the country. Some of the services provided by the government are: health care, electricity, roads, education system, free houses for poor, water supply, police, firefighters, judiciary system, disaster relief, taking care of bridges and other things of public welfare.

2) To Finance Multiple Governments: All the local government of the state like village panchayats, block panchayats and municipal corporations receive fund from the state finance commission.

3) Protection of the Life: Tax payers receive the protection of life and wealth from the government in case of external aggression, internal armed rebellion or any other situation in exchange of tax paid by them.