The Role and Significance of Tax in Growth and Development of Economy

tax paying is the most important factor in the progress and development of a society. It also, causes the growth and development of economy and its indices, realization of social justice, increase of services and construction and improvement of the country. Fair collection of tax can solve many social and economic problems of a country like the annual budget deficit, inflation and unemployment and create social justice through redistribution of income. The government can provide financial sources through receiving tax and use these resources to construct and empower economy and infrastructure development. The most important aims of tax collection are to reduce the gap between incomes of people in different social classes and eventually provide social welfare and economic growth. The present descriptive-analytical article attempts to investigate the role and significance of tax in the country’s economic development.

Keywords: Tax, Economic Development, Social Justice, Public Welfare