Why do we pay Taxes?

This podcast explores the concept of tax and explains how paying tax will help the government to provide better for its goods and services, like education, housing and roads.

Governments provide public services such as police services and roads to the public. The government also pays the salaries of civil servants. The public does not pay directly for these goods and services or for the time of public servants when they visit government offices, but indirectly be means of taxation. The government must therefore regularly decide how much to spend, what to spend it on and how to finance its expenditure. This is the reason why we pay taxes.

We all want government services such as better education, more policing and better roads. All these things cost money.

The government is faced by continuous demands to increase its expenditure as people want more goods and services from the government. These demands include free houses and free basic services such as electricity and water. The provision of these services to the needy, paid for by means of taxes raised from the more fortunate, amounts to a large redistribution of income from the payers to the recipients.

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