Collection of Taxes.
Taxes are the funds that individuals have to pay for the services they receive from the government and they are always involuntary.
Taxes are considered as the source of the governments monetary power, this s because they are the major source of income for the government, his is the reasons why the government puts a lot of regulations on the payment of tax so as to protect it.
In every activity that individuals engage in that is resulting to income is always taxed this might be in a companies, employment and business, also when we are buying products they always have an additional cost of tax from the original sale price such as while buying a car or a cloth in the shop.
Those companies and organizations especially in the NGOs and the food and medical sector companies that are providing services to the citizens in a humanitarian way such that their aim is not making profits are usually exempted from tax payment.
The government uses a lot of different methods to correct the taxes such as PAYE which refers to pay as you earn and others, in some methods like PAYE individuals do not pay the same amount of money for the tax.
There are many ways the government utilizes the money collected from the tax some of this ways are as follows.
The government pays a particular amount of subsidies to the products that individuals need is basic but expensive an example is on foods and sanitary.
Development projects, this is where the government uses the money to do projects that are aimed at benefiting the citizens of the country, some of the common development projects the government does are such as; construction of public schools, road construction and maintenance, and others.
Sometimes the government spends money on educational systems to ensure that it is affordable to them this money spent is from the tax pool.
The state has to pay the workers and thus the use of tax in payment of the police, military, and other administrators.
Charity is another way in which the government spends the taxes, this is usually when they are helping the needy citizens or non-citizens such as a neighboring country which is experiencing a problem such a famine of any other calamity.
In case one fails to you the taxes, it is always considered a crime and leads to either a jail term or a serious monetary punishment.
For the sake of credibility the government ensures that they make it clear on the money that was collected and also, are accountable for the expenditure of the taxes.