Taxes system, that is why they use in

Taxes on the Way to Saudi Arabia

 

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Abeer Almuhaidib

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Ms. Weam Baashen

ENG103

20122017

 

 

 

 

 

 

 

 

Taxes on the Way to Saudi Arabia

         Finally, Saudi Arabia have taxes! So, for
Saudis, the question is what is “Taxes “exactly? Or what is the taxation
system? Taxes is a way of making revenue for the government from workers’
income and business profits, or added to the cost of some goods, services, and
transactions. It is reasonable to have taxes in Saudi Arabia nowadays, in
return of improving the quality of every governmental service, and the quality
of life for every individual in the country. As the taxation system will
require more political effort from the government to secure taxpayers’ life
essentials. Moreover, taxes will require more development in services that
taxpayers already have. On the other hand, some people arguing that taxation
system will make people ask for more benefits and advantages and representation
from the government, while the improvement demand is something will be always
there. Also, there is many experiences from different countries that we can see
and learn from, to avoid any possible problems might appear after start
collecting taxes officially.

         Now,
why taxes are good? What kind of benefits would come from taxation system? In
fact, there is a variety of benefits could rise from this system, that is why
they use in almost every improved country. Fischel (2001) showed in his article
that taxes is a big resource for any government in the world to make money that
needed to protect the land in the first place. Very large amount of money is
being spend all over the world by every country for the defending purposes,
even though there is no wars or any danger or serious need to spend it. Because
you will never know when it is the time that you need your defence ministry and
your army to be ready for the serious matter, these kind of things could happen
or change in a matter of days, or even it might be a matter of hours! Although,
to keep the country itself safe for their citizen, it should have a great
police departments, whereas also a lot of money need to be spend indeed. In my
opinion, the more you spend in this field the safer cities you will have, and
the safer cities means more comfort for the people, not only citizen, but also
more comfortable country for tourists. More clear benefits from the taxation
system is the job opportunities that will be created, because the government
will need many workers to run this system in the best way, from sitting the
rules, until collecting and receiving the money from taxpayers, followed by how
and where this money will spent. To finish up in this sector, many governments
take advantage from the tax revenue to provide taxpayers themselves with more
places to live, like housing buildings which is available to everybody with a
very reasonable amount of money, saving taxpayer from much more expensive other
options, like private rental apartments, or even build private houses for their
own.

       Another significant advantage of the
taxation system, would be the development in the most important services for
the taxpayers themselves. Taxes is a key factor that will open a door to
improve the quality of the essential services, such as the education system,
the health system, and the infrastructure of the whole country, which basically
will improve every tiny detail in the daily life quality for every single person.
Fischel (2001) talked about the advantages and the benefit view of the property
tax. He showed how is tax revenue for the government can be actually beneficial
for tax payers when the government use this huge amount of money to improve the
main important services which is provided for them, such as hospitals, schools
and universities, and the infrastructure. In terms of the facilities in these
places, with the most modern machines and technologies. As well as the
facilities, this money can be used to build more buildings for these services,
as people always complain about the lack of spaces and beds in schools,
universities, and hospitals. In addition, the health and education systems are
both the key to gain people’s satisfaction, and loyalty as well. Besides the
health and education system, the country’s infrastructure is an essential field,
with a massive room for improvement always. That’s cover every kind of
infrastructure that might make people’s daily life easier, more convenient and more
comfortable. For example, the transportation system, especially the public
transportation. Such as build more roads inside and outside the cities, as well
as linking the major cities with the small ones. What is more, establish new
public transportation method like train railways, underground metro, tram, and
even ferries. Another important example, would be improve the country’s power
supplies, especially in a country that have an absolutely huge amount of
electricity consumption, with a very hot temperature for almost 10 months every
year like Saudi Arabia. Another great example would be the communication and
internet system, which is a vital thing nowadays. As our lives become more and
more reliable on the internet to do almost everything.

        There are some people argue that the
taxation system might be dangerous for a country, their citizens not used to
it. As these people might demand more and more benefits and representation in
return of suddenly paying this money. However, the taxation system is not a new
method to make money, in fact it is a worldwide solution used by almost every
country in the world. These countries whom used it and make approximately half
of their income from it never had any problem from these kinds. In addition to
this, the demand of improvement of the country is something necessary, this
demand will exist whether the government is really improving enough or not. For
example, Johansson, Heady, Arnold, Brys and Vartia (2015)
in their study about tax and economic growth, showed that people ask for more
benefits and advantages even in the good times. They demanded more in terms of
the investment, Labour utilisation, and productivity. That is an example
clarify how the process will be in any stage, with the taxation system or without
it, with the proper effort from tax receiver or not.

       To sum up, why I incline to think that
taxation system is a vital change needed in a country such as Saudi Arabia? As
mentioned in this research, taxation is a key factor to keep the country improving.
Firstly, because of the need for the country itself to provide the secure life
from the government to their citizens. Secondly, for the sake of making
taxpayers life more comfortable by improving every important aspect of their
daily life. Despite the arguments about the possible dangers from this
changing, the demand of improvement will always be there, while any government
should be aware of that and make enough effort to keep these demands reachable,
and make the people who asked for it satisfied eventually. Last but not the
least, taxes is the logical solution to balance the income with the expenses
for any government in the world. Finally, with these different huge changings
in Saudi Arabia along with Saudi Vision 2030, are we awaiting of a completely
different country in terms of the best possible life?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Whitaker,
B. (2010, August 23). Why taxes are low in the Middle East. The Guardian.
Retrieved from https://www.theguardian.com/commentisfree/2010/aug/23/why-taxes-low-arab-world

Fischel, W. (2001, March). Home
voters, Municipal Corporate Governance, and the Benefit View of the Property
Tax. JSTOR. Retrieved from http://www.jstor.org/stable/41789539?seq=1#page_scan_tab_contents

 

Johansson, Heady, Arnold, Brys and Vartia.
(n.d.). Tax and economic growth. Mena Oecd Investment Programme. Retrieved
from https://www.oecd.org/mena/competitiveness/41997578.pdf

 

Ferretti, Maria, Roubini and
Nouriel. (1998, November). Growth effects of income and consumption taxes. Journal
of Money, Credit & Banking. Retrieved from file:///C:/Users/hp/Downloads/tax2.pdf