The concept of taxes originated from ancient Egypt around 5,000 years ago, when the ruling Pharaohs collected a 20 percent equivalent of all gain harvests from its citizens. This concept was then on adapted by different societies and countries, and became a dynamic system that evolved depending on the societal and cultural aspects of each society that practiced it.
What exactly are taxes?
Tax is the mandatory contribution imposed upon the tax-paying citizens of a country, which are collectively used as funding for government spending, public expenses and projects. In simple terms, tax is the amount of money you need to give to your government, in order for the said government to have funding for its projects. Although it seems unfair at first, that we need to give a piece of the pie to the government, the pie that we worked hard for, we need to understand that the contributions we make through our taxes are essential in keeping our society afloat and progressive. Taxes serve as the primary source of fund for the government, fueling its on-going projects and efforts to improve the society we live in. Without taxes from its citizens, the government would collapse, bringing with it the started projects and collective efforts that are intended for the betterment of its people.
Its importance
Now that we understand that taxes serve as the source of fund for the government, we can now grasp that the taxes we pay to the government are used in different aspects of society including education, health, social welfare, national security and many more. Modern and evolved taxation systems are aimed towards providing equality and equity for its people, by means of imposing higher tax rates for high-income individuals and entities. Theoretically, this system should bring some degree of economic equality through wealth distribution, and giving opportunities for the lower-income citizens.
Tax Consciousness Month
Understanding the importance of taxation and the pivotal role it plays in the progress of our country, the Philippine Government under former president Ferdinand Marcos Sr., declared March as the annual Tax Consciousness Month, urging the Filipino citizens to embrace each’s responsibility towards the development of the country. This is under the Proclamation No. 1239, series of 1974, signed by the former president’s executive secretary, Alejandro Melchor, on February 20, 1974. The proclamation reminds the Filipino people the importance of paying taxes in the progress of our society.