The purpose of taxation is to generate revenue for the government in order to fund public services, projects, and infrastructure. It is a way for the government to collect money from individuals and businesses to finance various activities that benefit society as a whole. Taxation helps governments cover expenses related to healthcare, education, defense, social security, transportation, environmental protection, and other essential services that contribute to the overall development and well-being of a country. Additionally, taxes can be used to regulate and influence economic behavior, address income inequality, and promote social justice.
Taxation serves several purposes: