What Is Tax Money Used For? Here's The Retail

What Is Tax Money Used For?(Gift Habeshaw Image - Unsplash)

YOGYAKARTA - Taxes are a term that is certainly familiar to everyone. We often encounter taxes in everyday life. Starting from Land and Building Taxes (PBB), Motor Vehicle Taxes to Income Taxes (PPh), and also for certain consumptive products that are enjoyed including taxing. For many people, taxes may seem burdensome, however, if you look further, taxes have many benefits. Then, tax money is used for what?

Development is a business that is carried out together with the aim of improving people's welfare, either materially or spiritually. To be able to realize this matter, the state must obtain sources of funds originating from within the country, namely in the form of taxes.

Taxes are the contribution of the people to the state that is owed, either as a private person or a business entity that is in the form of coercive under the law. The results of the next tax collection used for various state needs play a role in supporting the prosperity of the people. Tax payments are an embodiment of obligations and roles and must be taxed to participate immediately and simultaneously carry out state financing and national development.

Everyone needs to understand the tax function that is very important for national development. This knowledge has a goal so that tax compliance is carried out by each taxpayer. The following is a review of the tax function that we pay regularly.

In general, the tax function can include these four functions:

Taxes are applied to finance national development or other state expenditures. Taxes are state revenues that are useful in balancing state spending with state revenues.

Taxes are used as a tool to adjust social and economic policies. Taxes are able to be used to adjust the inflation rate, encourage export busyness, add protection or assistance to domestic processing goods and attract investment.

Taxes function to distribute people's welfare.

Taxes are also applied to stabilize the atmosphere of the economy. For example, to overcome inflation, the government makes high tax decisions so that the amount of money in circulation can be reduced. Likewise, when the state experiences economic downturn, the government responds together to lower taxes so that the amount of money in circulation can increase.

Not only the benefits that have been explained above, some of the benefits of tax are used for:

Financing State Expenditures

Taxes are used to finance self-liquidating expenses, such as: expenditure for productive export goods projects.

Financing reproductive spending

Taxes are applied to payment of expenses that provide economic benefits for the community, such as: spending on irrigation and agriculture.

Financing expenses that are not self-liquidating and non-reproductive,

not only that, taxes are also applied to finance expenses used for the establishment of monuments and recreational objects.

Financing unproductive expenses

Taxes are also used to finance the expenditures achieved for national defense or war rates and spending on savings in the future, namely spending on orphans.

Obeying to carry out tax payments, each community can get the following benefits:

Through the discussion above, it can be concluded that taxes have a really important role for the progress of the nation and state. Therefore, as a wise taxpayer, we must pay taxes in accordance with the applicable tax regulations. by obeying taxes, we have helped and contributed to national development and the progress of the nation and state so that it is even better in every way.

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