Objectives of Tax

You misht have already seen the definition of taxes and the introdution to taxation already. Tax is a permanent instrument of collecting revenues, be it a developing or a developed nation
The main objectives of tax are:

• to raise more revenue 
• to prevent concentration of wealth in a few hands 
• to redistribute wealth for the common good 
• to boost up the economy
• to reduce unemployment
• to remove regional disparities

1. Raising more revenue: This is for financing the country

2. Preventing concentration of wealth in a few hands: So the tax is levied as per the income level of individuals. This narrows the gap between rich and the poor

3. Redistributing wealth for common good: by carrting out various welfare activities

4. Boosting up the economy: tax is an instrument for promoting economic growth, stability and efiiciency, controlling market failure, balancing international debts

5. Reduce unemployment: by promoting various employment generation activities

6. Remove regional disparities: The government can provide tax exemptions on industries established at the countryside and remote areas. This will help increase economic activities in that area