Opening Statement:

"Taxation is essential to the functioning of a

society. Indeed, it could be argued that taxation
is one of the earliest signs that a civilisation has
developed, as it permits the financing of
common facilities and of government itself."

Governments collect taxes to ensure that they raise revenue to fund their
activities.
It is the most practical way for them to finance their spending on the public goods
and services you require as a citizen.

taxes you pay also fund the building and maintenance of public infrastructure
(Public health, Electricity/Agriculture facilities ( DAMs ) / Subsidies )/Schools,
payment for human resources that provide government services
such as the military, public health, agriculture facilities ( DAMs ) the
maintenance of public parks and other public investments.

To foster economic growth and development governments need sustainable sources of

funding for social programs and public investments.
Programs providing health, education, infrastructure and other services are
important to achieve the common goal of a prosperous,
functional and orderly society. And they require that governments raise revenues.
Taxation not only pays for public goods and services; it is also a key ingredient
in the social contract between citizens and the economy.

Individuals receive benefits from Government ( using transporation/ inftastructure/

healthcare etc ), hence they are bound to pay for what they receive.

Corporate and Companies should a share their profits with the government,
since they use government's infrastructure ( Electricity/ Roads/ water / sewerage
facilities)

So, until someone can develop a much better way of generating the necessary funds,
taxation will remain

What happens if there is no Tax?

a.) Government will not have enough funds to spend in infrastrure and needs to
borrow huge amounts for providing services
b.) Huge increase in costs of all services provided by Government such as Health
Care/ Transportation/ Education and other services as Private players would
monopolize the services: For Ex:Most of the Governments are providing Covid
Vaccines for free for all the citizens, this is because of Taxation.
If there is not tax, the Vaccine would be sold by Private Corporates for huge sums
and would not be affordable for all
c.) Government would not able to fund the Military/ Police/ Judicial/ Fire Depts.
This would create a law and order havoc in the society and
may lead to civil unrest/ lead to wars
d.) Increase in Unemployment as there would not be any infrastrure development and
no Job creation, may create civil war situations.
e.) It would create a Monarchic regime where government owning everthing charging
for routine services like water,
electricity, and garbage and limited services and modernizations.
f.) We would have lived in Isolated societies without any development
Can any Country function without Tax?

It is possible, by selling the Natural Resources ( Such as: Saudi Arabia, selling
oil).
But what after depletion of Natural resources

For Ex: Nauru, the country with No taxes, once was very rich in Natural ( Phosphate
deposits).It was one of the richest countries.
It has used all the natural resource, which is now deplete and now very poor,
completely dependnent on Aid of another country.
Principles of Taxation is:

(1) the belief that taxes should be based on the individual’s ability to pay, known
as the ability-to-pay principle,
(2) the benefit principle, the idea that there should be some equivalence between
what the individual pays and the benefits he/she
subsequently receives from governmental activities
(3)Every tax ought to be levied at the time, or in the manner, in which it is most
likely to be convenient for the contributor to pay it
(4) Every tax ought to be so contrived as both to take out and keep out of the
pockets of the people as little as possible over and above
what it brings into the public treasury of the state

What Government generally Taxes:

a.) Individual Income Tax: Progressive Tax: the higher your income is, the more
individual income tax you will pay.
So this is designed to reduce the gap between rich and poor, which in every country
is increasing

b.) Corporate Income Tax: Corporate income tax is imposed on Corporation/ Company
taxable income.
So, a share of their profits will go to the government, since they use
government's infrastructure ( Electricity/ Roads/ water / sewerage facilities)

c.) Goods and Services Tax (GST)/Sales/ VAT/ Excise Tax: Excise taxes are imposed
on specified items, services or activities at the consumption,
production or retail level at different rates, depending upon the products: Ex:
Excise tax on Cigarettes/Alcohol would be very high to reduce the
consumption