Why Are We Taxed?

We have all heard the word ‘Tax’ but do you know what it means?

In a civilized society, we all need some common amenities such as roads. water. electricity, sewage treatment, and in the larger picture, the central government needs money to support defense set-ups, dams, bridges, post and telegraphs, railways, mines, healthcare, education, support for the needy, etc. The tax also helps subsidize items like cooking gas, fuel and essential medicines, etc imported from other countries. Someone needs to pay the government servants who carry out these tasks for us. All citizens, therefore, pay a portion of their earnings or assets to support the government. This money paid is called tax and is levied as per money earned per year. ‘ Income tax collection is looked after by the Finance Ministry. Tax is levied according to one’s ability to “pay. If you earn a small income, you pay less or no tax. In a nutshell, tax is a necessary evil, to be paid by all sincere citizens.