Tax Functions for the State and Its Understanding

Tax Functions and Their Definitions - Many people need to be made aware of the importance of a tax for the state. With taxes, a country can develop to carry out the development of an area for the progress of the regional economy. 

In addition, the existence of taxes proves that people love their country by contributing to the development of a nation. Taxes have an important function for civilization and result in a country. Therefore every obedient citizen must pay taxes by the types of taxes issued that have been determined by the state. 

A simple example that we are obedient to paying taxes daily is when we pay vehicle taxes, where we have to pay a vehicle tax at the Samsat every year, whose costs have been determined. One of the benefits of collected tax funds is building road infrastructure. 

For more details about the meaning and function of taxes, we will review them for you. 

 

The definition of tax is 

tax is a contribution that is required by the state to every citizen that must be paid and is coercive by the laws and regulations to be managed by the state and have an impact on the prosperity of the community. 

Payment of taxes is a mandatory role for every citizen to achieve common goals. It is managed for national development so that the tax payments made by every citizen will be enjoyed by the citizens themselves for mutual progress. 

The tax management itself is managed directly by the government. In this case, the one overseeing state taxes is the directorate general of taxes, which contains taxes collected from the regions from various types of taxes carried out.

 

Tax Functions 

According to the pajak.go.id, several tax functions have an important role in the state's life cycle. Taxes are an important source in financing the running of a country to finance all state expenditures, including from the development sector. The following is a tax function in a country. 

1# Regulatory Function 

Through taxes, the government can regulate various aspects of economic growth through tax policies and regulations. Through the tax function, this regulation can be used as a means to achieve a state goal. 

For example, as a means to carry out investment driving outside and within the country that provides tax relief facilities. Through taxes, it is also possible to set high tax rates if products enter the country by determining import duties on goods. 

2# Stability Tax Function 

With the money collected through public taxes, the government can carry out stability in a country by controlling price stability to cope with the impact of inflation. One of them is to regulate the circulation of money in the community, use effective and efficient taxes, and collect taxes. 

3# Budgetary Tax 

Function The main function of tax collection is to finance various state transactions. With the tax function as a budget, it can be carried out in multiple tasks for the course of a country. Among the parts of the tax, the budget is carrying out routine state duties as stated in the constitution. 

Another example of using taxes for the budget is to finance personnel expenditures, carry out development, goods expenditures, maintenance, the welfare of the public interest, and so on. With the tax levy, the results will return to the community so that the impact can be felt directly by the community.

4# Income Redistribution 

Function The next tax function is income redistribution. All the taxes collected will be used for the public interest, including managing tax funds for infrastructure development costs to open up job opportunities for the wider community. Thus, the economy will run and can be enjoyed by the community to the lower classes. 

 

Closing 

From our various reviews above regarding the meaning and function of taxes, you will know in more detail the purpose of tax revenue in a country. In addition, with the tax system, a country can be more developed for the progress of a nation and state. 

This is the review of blog.ilmuskripsi.com regarding tax understanding and its function. Our review of this tax can add insight and regulation for you about the world of taxation in a country.

 

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