Any entrepreneur or ordinary worker is required to pay taxes. There are many different taxes. They are needed in order to meet the social needs of the state.
The taxation system ensures the flow of funds to the state and local budgets.
Taxes are needed to maintain various government structures such as the army, police, ministry of emergency situations, customs, budget departments and agencies. Deputies of the State Duma and local legislatures need funding.
Thanks to taxes, the state can pay unemployment benefits, pensions and other social benefits. Orphanages are supported by taxes, and a free medical service system exists thanks to budgetary funds. Free education in schools, universities and secondary specialized educational institutions.
The state and local governments use budgetary funds to organize various social events. Days of the city, decorations for holidays, sports events, etc. With the help of the funds provided by the taxation system, infrastructure is being developed: the condition of roads, street lighting is improving, landscape objects are being ennobled and greened.
There are many types of taxes. Transport tax is paid by car owners, personal income tax is deducted from the salaries of ordinary employees, and payroll taxes are paid by organizations. Legal entities pay more taxes than individuals. So, income tax is paid depending on the difference between the income and expenses of the organization. There is a value added tax that is charged on retail and wholesale goods.
The authority that levies taxes is called the tax office. The tax office accepts income declarations from legal entities and individuals and regulates the rules for the payment and collection of taxes.
