Many countries around the world have less taxation system. There always remains a question that why are taxes paid? Well, in simple words, taxes help to build the nation. Government lays down the taxation system for the development and maintenance of roads, bridges, and other public utility services. Without the system of taxation, it would be impossible for a government to run the whole country.

Are there countries with less tax or no tax?

Yes, there are many countries with fewer tax systems. Some countries also offer people to live tax-free. Some countries with less tax or no tax are Bermuda, western Sahara, UAE ( United Arab Emirates). Now the main question arises that how does the government-run these countries with less tax system. The answer is quite simple. The various paises con menos impuestos earns revenue mostly from oil refineries or industries. The revenue earned from these industries is enough for running the entire country. Everything can be managed, including the maintenance of public utility services. Thus one can easily make out the most of the developed countries only have less taxation system. India is still a developing country and hence requires a proper taxation system. Every state has a different system for taxation here, but they are somewhat prepared in the same way for the entire public.

Benefits of the taxation system

Forget about less tax or fixed tax. Every taxation system is beneficial for the entire country itself. Some of the benefits are listed below:

  • Salaries of state and government officials are decided through taxes.
  • Taxation helps in developing the public infrastructure for the entire country.
  • The defense expenditure is also maintained with the help of a proper taxing system.

Thus one can see that from welfare projects to public infrastructure, a well-designed taxation system is required. Countries with fewer taxes also serve the same benefits, but most of these needs are met by big industries generating huge revenue.