THE BENEFITS OF TAX

Ever wonder how the government would finance the public utilities and amenities that we demand for common good? Well taxes are the income that government gets to take care of all our social and community needs. So, how does paying taxes benefit us? Let’s look at some of the benefits of paying tax.

Development

In this context, means that all components of Kogi State will have equal or near equal opportunities and near even resources, to grow and develop at their own pace. Development is consequently a continuum in the life of Kogi, where we the citizens and its residents, actualize our dreams, when Kogi continually conquers its environment, provides most of all the economic, social, technological and political needs of its people, on its own terms. Development will also entail a condition where Kogi State constantly protect its own people, and relates with the world, on its own terms.
A steady flow of revenue that would enable Kogi State to lay the foundation for stability and relative self -sufficiency would help the state’s quest for development.

Though the following is not exhaustive, development would involve the availability of the following:

a) Social infrastructure such as in education and health with emphasis on continuing education and constantly improving our health care

b) Physical infrastructure to enable private sector investment: that is energy, transportation, security of life and property

c) Access to Property, Capital, and Opportunity for Individual and Communal Development

d) Provision of social amenities for the young, the disadvantaged, the physically challenged, the old and the dead

e) Security of Lives and Property .

SPECIFIC BENEFITS

Kogi State and indeed all socially responsible and law abiding individuals, groups, organizations and corporate citizens will derive valuable benefits from imbibing a culture of tax compliance. The benefits derivable include but are not limited to:

  • Providing sustainable finance and funding for governance, public and social services and economic development.
  • Promoting civic responsibility, patriotism by citizens and social responsibility by corporate citizens.
  • Stimulating priority social and economic activities and sectors while discouraging less preferred ones.
  • Bringing about the redistribution of wealth and bridging sharp disparities in living standards.
  • Giving taxpayers the moral and legal right to demand for (thereby engendering) a culture of accountability.
  • Serving as a gauge for measuring the level, growth and health of economic units and economic activities.
  • Individuals and corporate organizations are conferred with definite benefits, rights and privileges in the system based on their tax compliance status.
  • Tax compliance enables law abiding citizens to avoid the consequences, penalties and sanctions of non-compliance.

(1) Income for running the government:

The Government is also an institution or organization. It has its requirements of infrastructure, people, utilities, and equipment. As in the case of all organizations, it also requires finance to take care of all its needs. So where does the government get its finances obviously, from the taxes that we pay. The taxes that we pay are used for remunerating all the government representatives, officers, administrators, and employees and for all other expenses related to the running of the government machinery.

(2) Public utilities and amenities:

We often forget the fact, although technically the government is responsible for fulfilling these commitments, it can plan and accomplish these only if we pay our taxes correctly. Our taxes are what help the government to fulfill its promises. In fact the next time you drive through the expressway, remember that you have contributed towards its construction and maintenance and you can be proud of that fact.

(3) Free Education and Medicare:

The taxes that we pay are what enable the lesser privileged many to get a good education and healthcare that they cannot afford themselves. In fact the government is able to work out plans of free primary and secondary education or free adult education for the under privileged only because of the income that it gains from tax payers.

(4). Security:

Your taxes not only support the internal security forces but also the national security personnel. These security forces are what protect our country from external enemies and terrorists who threaten the security and peace of the nation.

5. Social responsibility:

Paying taxes creates a sense of social responsibility in all citizens. When people pay taxes the sense that they are the financiers for social amenities also makes them responsible citizens. They are keener to protect and utilize these amenities in the most effective and efficient manner.
Thus, the next time you think of evading tax or wonder why the government can’t create a tax-free budget, think of all these benefits and what the lack of these would mean to the society. Probably it doesn’t take much to realize taxes are a very vital aspect for the smooth running of the society.