Taxation and why is it Essential
Have you ever wondered how schools and roads are built? Or where did the government
in a nation get its financial needs to meet their budgetary demands for public projects. In short,
you are! That is, if you are old enough to pay taxes. Taxes are ways in which the government
impose charges on their citizens and businesses as a means of rasing revenue.
Taxation has been defined as the process or means by which the sovereign, through its
lawmaking body, raises income to defray the necessary expenses of the government. Taxation, as
a power of the State, is inherent in sovereignty. A government cannot continue to exist and
operate without financial means. This inherit power gives the government the right to tax citizens
and properties within its jurisdiction.
Taxation is much more than just a means of raising revenue for the government. It is
necessary for a nation to survive for the welfare of its people. Without taxes, governments would
be unable to meet the demands in different aspects such as healthcare, funding and maintaining
the public education system, transport, housing, etc. Moreover, the process of taxation is also
important for businesses. It helps raise the standard of living in a country. The high standard of
living leads to high level of consumption which in return lead to businesses to prosper because