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CBSE Class 7 Answered

Why does the government collect taxes?
Asked by Topperlearning User | 20 Apr, 2016, 09:49: AM
answered-by-expert Expert Answer

The government collects taxes for providing many public services for the benefit of all the citizens of the country. This is because the citizens cannot organise the services all by themselves. It uses the tax money in various ways as follows:

  • Takes care of various services such as police, judicial system, defence and transport—railways, roadways and airways.
  • Organises developmental programmes and services for needy people. These are education, healthcare, employment, social welfare and vocational training.
  • Provides relief and rehabilitation in case of natural disasters such as floods, earthquakes, landslides, hurricanes and tsunamis.
  • Funds research programmes such as nuclear programmes, missile programmes and space research programmes.
  • Provides some services especially for the poor who cannot afford to purchase things from the market.
Answered by | 20 Apr, 2016, 11:49: AM
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