Taxes are the determining factor in the development of any nation. The amount of taxes therefore contribute to the economic growth of any country.
Taxation is one of the instrument that helps in government funding and it also boost the performance of public sector.
Taxation holds the significance in the economic growth in meeting the economic regulation needs.
Taxation is of great importance to any economy as it determines the direct consumption pattern of citizens. It regulates the investment and disinvestment in certain sectors.
Most importantly taxation plays an important role in the development of a nation as taxes are the main source of government revenue and through the proceeds of taxes, the government regulate its functions.
Many of the taxations and incentives attract the foreign investors to a country that ultimately contribute to the development of any nation. This significantly provide the investors the opportunity to wholly recoup their investments and this will eventually expand the economy and its growth.
Without taxation, the government would not be able to meet the needs of its citizens. Taxes are the crucial key points in developing the health sector, education, transport, housing, infrastructural development and governance.
All these factors affect the society and helps the economy to run smoothly.
Apart from social welfare, the government use the funding from taxes for wellbeing of citizens by allocating the amount in security, research, environmental protection etc.
The amount of taxes can also be used in major projects of pension, unemployment and childcare benefits which are beneficial for the development of any economy.
Taxes generally contribute to the GDP of a nation thus contributing to the economic growth of a country.
Government also invest the amount of taxes to help the businesses flourish thus giving an advantage to the nation.
To develop the nation, the foremost step is to develop the business, thus the government provides better infrastructure to the businesses by investing the funds from taxes that will eventually develop the nation.
In a nutshell, taxes help to raise the standard of living of any nation. The higher the standard of living, the stronger the nation will become.
From businesses to individuals, everyone and everything will flourish.
Thus taxes play a significant role in the development of a nation.
Taxes are essential and every individual is meant to reap the benefits of these taxes and help society to grow at a better place.