The Role and Challanges of Taxes in Maintaining Economic Balance and Growth

Taxes are one of the important instruments used by the government in collecting revenue and maintaining a country's economic stability. As a fiscal policy instrument, taxes have a direct impact on economic activity, government revenue and resource allocation. Through the collection of funds from the public and companies, the government can finance public activities such as infrastructure development, education, health and others. The role of taxes is indeed numerous and fundamental, as it has a direct impact on the country's economy. In addition to having an important role, taxes also have challenges in its application. This article will discuss the role and challenges of taxes in maintaining economic balance and growth.