The Importance of Taxes

Wherever we go and whatever we do, different types of taxes surround us. Taxes affect us all, but why do we pay them and what they are meant for? Let’s find out.

The very first recorded system of taxation was found in Ancient Egypt, sometime between 3000 and 2800 BC. The most ancient and most common forms of taxation were known as the corvée and tithe. The corvée was a form of forced labour that poor commoners would offer the rulers of a state when they were unable to afford any other means of taxation. The tithe was a form of tax that was collected from commoners by the Egyptian pharaoh who would tour his kingdom regularly.

In 500 BC, during the time of the Persian Empire, a structured and rather long-standing system of taxation was introduced by Darius

I the Great. The Persian system of taxation was customised according to each geographical area known as a Satrapy, which was under the charge of a specific provincial governor. There were approximately 20 to 30 Satrapies in the Persian Empire, and each Satrapy was expected to offer taxes based on the amount and type of work in which it was involved.

Taxes Today

There are several types of taxes that exist today. They may vary from country to country, but they are important for most countries. According to the Inland Revenue Authority of Singapore (IRAS), “[t]axes are used to develop Singapore into a stronger community, a better environment and a more vibrant economy, a place that Singaporeans can be proud to call home”. Since taxes are important for Singapore, let us take a closer look at some common types of taxes that we pay in Singapore.