mytaxbizz.com – Get to know the Functions, Benefits and Types of Taxes for National Development
The function of taxes is very important for the development of the country and society. Taxes are used to finance various kinds of public expenditure. Taxes are paid by the people to the State based on applicable laws. The tax function is so important that everyone must fulfill their tax obligations. Without the tax function, most state activities would be difficult to carry out. However, there are still many people who do not understand what the function of tax is. This makes many people avoid their tax obligations.
The tax function is one of the largest sources of state income. The tax function will also be enjoyed by all citizens pragmatic. Therefore, it is very important to pay taxes in an orderly manner.
1. Budget Function
The first tax function is the budgetary function. In Indonesia, taxes are the largest contributor to state income. Taxes are used to finance budgets related to development and state interests. As a source of state income, taxes function to finance state expenses. Taxes are used to carry out routine state tasks and carry out development. Examples of the function of this tax are providing health facilities, education, infrastructure and other public services.
2. Regulating Function
The second tax function is the regulatory or regular function. Through taxes, the government can regulate economic growth. With a regulatory function, taxes can be used as a tool to achieve goals. For example, to protect domestic production, the government sets high import duties on foreign products. The existence of tax policies can reflect a country’s economic policies.
3. Stability Function
The third tax function is stability. With taxes, the government has funds to implement policies related to price stability. This keeps inflation under control and the economy running stably. Taxes play an important role in maintaining the balance of a country’s economy. This tax function can be carried out, among other things, by regulating the circulation of money in society, collecting taxes, using taxes effectively and efficiently.
4. Income Redistribution Function
Taxes are used to finance all public interests, including to finance development. The development in question is like economic development that creates jobs. Opening job opportunities can distribute people’s income evenly.
Benefits of paying taxes for society
1. Infrastructure and Public Facilities
Building roads, building bridges, schools, toll roads and places of worship are several types of infrastructure and public facilities that have been built from part of the allocation of tax revenue funds.
Educational Facilities
Taxes are also used for the construction of educational facilities. Government programs in terms of education such as the Smart Indonesia Card (KIP), Bidik Misi Scholarship and Operational Assistance (BOS) are a series of tax-paying benefits from the education sector.
2. Public transportation
The availability of public transportation facilities in every region is one of the benefits of paying taxes. The government provides good, comfortable and affordable public transportation facilities for the public to overcome congestion and other problems related to public transportation.
3. Health Facilities
Part of the tax revenue is allocated to the health sector. Apart from that, paying taxes is also useful for improving hospital services and quality as well as JKN/KIS financing for Contribution Assistance Recipient (PBI) participants.
4. Security and Order
Another benefit of paying taxes is that you can feel security and order. Tax revenue funds are used to procure weapons or combat vehicles as well as modernize all aspects of land, water and air security.