Recognize the Functions, Benefits and Types of Taxes for State Development

Hisconsulting, the tax function is very important for the development of the country and society. Taxes are used to finance various kinds of public expenditures. Taxes are paid by the people to the state based on applicable laws.

The tax function is so important that everyone must fulfill their tax obligations. Without the tax function, most state activities will be difficult to run. However, there are still many people who do not understand what taxes are used for. This makes people avoid their tax obligations.

The tax function is one of the largest sources of state revenue. The tax function will also be enjoyed by all citizens. Therefore it is very important to pay taxes in an orderly manner.


The first tax function is the budget function or budgetair. In Indonesia, taxes are the largest contributor to state revenue. Taxes are used to finance budgets related to development and state interests.

As a source of state revenue, taxes serve to finance state expenditures. Taxes are used to carry out routine state tasks and carry out development. An example of this tax function is to provide health facilities, education, infrastructure and other public services.

The second tax function is the function of regulating or regular. Through taxes, the government can regulate economic growth. With a regulating function, taxes can be used as a means to an end.

For example, to protect domestic production, the government imposes high import duties on foreign products. The existence of a tax policy can reflect a country’s economic policy.

The third tax function is stability. With taxes, the government has the funds to carry out policies related to price stability. This makes inflation controllable and the economy stable.

Taxes play an important role in maintaining the balance of a country’s economy. This one tax function can be carried out, among others, by regulating the circulation of money in the community, collecting taxes, using effective and efficient taxes.

Taxes are used to finance all public interests, including to finance development. The development referred to is like economic development that creates jobs.

The opening of job opportunities can distribute people’s income evenly.

The benefits of paying taxes for the community

Public Infrastructure and Facilities

Road construction, construction of bridges, schools, toll roads and houses of worship are several types of infrastructure and public facilities that have been built from a portion of the tax revenue allocation.

Educational Facilities

Taxes are also used for the construction of educational facilities. Government programs in terms of education such as the Smart Indonesia Card (KIP), Bidik Misi Scholarship and Operational Assistance (BOS) are a series of benefits of paying taxes from the education sector.

Public transport

The availability of public transportation facilities in each region is one of the benefits of paying taxes. The government provides public transportation facilities that are good, comfortable, and at an affordable price for the community to overcome congestion and other problems related to public transportation.

Medical facility

Part of the tax revenue is allocated to the health sector. In addition, paying taxes is also useful for improving hospital services and quality as well as JKN / KIS financing for Contribution Beneficiary (PBI) participants.

Security and Order

Another benefit of paying taxes is being able to feel security and order. Tax revenue funds are used for the procurement of weapons or combat vehicles and for modernization in all aspects of land, water and air security.

Domestic Entrepreneur Profits Will Multiply

Imported goods that are subject to high taxes by the government aim to make domestic production able to compete in the market. Taxes paid by importers will dampen the trade balance and the quantity of goods will decrease. Thus, entrepreneurs can promote their business and compete with imported goods.

Getting Loans Easier

The benefits of paying taxes in an orderly manner can make it easier to get a loan from a bank. Of course this is very easy for business owners. With a special NPWP business card, the bank will consider you a professional business player.

Demonstrates the Financial Health of the Company

Another benefit of paying taxes is that it can show the financial health of a company. Of course this needs to be supported by good financial management. The Directorate General of Taxes will provide a fine for every entrepreneur who is late in paying taxes. The existence of a penalty due to late payment of taxes will make entrepreneurs aware of the importance of paying taxes.

Efforts to Become More Professional

Paying business tax will make the business appear more professional to distributors and consumers. This is because when engaged in business in the manufacturing sector, the Taxpayer Identification Number (NPWP) is one of the most important parts of the cooperation contract letter. If you don’t have a NPWP, the company will look unprofessional.