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Well usually the tax money collected from people is used for the infrastructure of the country. The money collected from tax is used to fulfill various activities, like upgrading the defence system of the nation, providing subsidies to other states of the country which do not economically fare that well, upgrading the day to day necessities which are used by the common man like the transportation system, power supplies, road facilities etc.
Tax basically is a monetary charge which is imposed on a person or legal body by a government. Taxes usually comprise of direct tax or indirect tax and can be paid either in money or as corvee labour. A tax is generally defined as "financial burden laid upon people or assets to support the government".
answered 2 years ago
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