
Every government needs money to fund its political, social and economic duties. Much of what they spend is generated from taxes, fines and sales of public goods and services.
The exchange of these revenues for government services is at the heart of the social contract citizens make with their governments. As the primary source of internal revenue, taxes play a key role in making growth sustainable and equitable. In most countries, tax payment is compulsory, and people who fail to comply are normally penalised.