ICSE Class 10 Answered

Taxes are very significant to generate revenue for financing developmental programmes like construction of roads, railways, schools, hospitals, etc. It requires a huge amount of money to maintain the administrative structure of the government. The government provides tax relief to entrepreneurs to manage the production of a commodity. Such tax policies help in the expansion of certain industries, trade, etc. Custom duties help to reduce the import of goods which are domestically available within the country. Thus, taxes can be used for promoting the economic growth of a nation.