Trends in Payroll Taxes across key employment markets in Africa
Tax is a compulsory payment which every worker earning an income or business making a profit has to pay. Governments impose these charges on their citizens and businesses as a means of raising revenue, which is then used to meet their budgetary demands such as funding the government and public projects as well as making the business environment in the country conducive for economic growth.
Paying your tax is considered a civic duty and a requirement of the law and the amount of tax you pay depends on how much you earn. Although the benefits of paying your taxes may not be directly apparent to you in your everyday life, it is important to know that the advantages eventually impact us in one way or the other.
Here are 5 reasons why it is important to pay your taxes:
- Health is an important reason why we should pay taxes. This enables the Government to build hospitals and also to provide drugs and pay doctors’ salaries.
- Government apportions some of these funds for the development of state infrastructure, such as roads, hospitals, security, etc.
- Tax will help improve the standard of education for all citizens and thereby increasing their standard of living.
- Taxes are like income to the government so that they can pay for socialized services within your country. These socialized services include pension funds and security.
- Governance; to achieve good governance, taxes are also used to pay civil servants to ensure a proper and functioning form of government.
It is important for every citizen of the state to pay his or her taxes regularly: while paying taxes may seem like a burden, take time to educate on the uses of taxes in order to be aware of how they benefit you.