1.Taxation is the main form and tool for the state to organize financial revenue.
Taxation plays an important role in ensuring and realizing fiscal revenue. Because tax is mandatory, free and fixed, it can ensure the stability of income; At the same time, the tax collection is very extensive, and it can raise financial revenue from many sources.
2. Taxation is one of the important levers for the state to regulate the economy.
The state can regulate social production, exchange, distribution and consumption and promote the healthy development of social economy through the setting of tax categories and the provisions on tax items, tax rates, additional collection or tax reduction and exemption.
3. Taxation has the function of maintaining state power.
State power is a necessary condition for the generation and existence of tax revenue, and the existence of state power depends on the existence of tax revenue. Without taxes, the state machine can't work effectively. At the same time, tax distribution is not based on the principle of equivalence and ownership? But by virtue of political rights? Adjusting material interests reflects what the state supports and restricts, so as to achieve the purpose of maintaining and consolidating state power.
4. Taxation has the function of supervising economic activities.
In the process of collecting taxes, on the one hand, the state should find out the situation and correctly calculate and collect taxes; On the other hand, we can find the problems that taxpayers have in the process of production and operation, or in the process of paying taxes. The state tax authorities may take measures to correct the problems found in the process of tax collection, or notify taxpayers or relevant government departments to solve them in time.