Why Adults Pay Taxes and Fees

JN KIDS – Have you ever wondered why adults pay taxes and fees? Find out what that money is for, who pays it, and how it helps to build schools, hospitals, roads and many other services we all rely on every day.

Picture your class wanting to buy a new ball. If everyone puts in a coin, it doesn’t take long to collect enough. Taxes work in a similar way: millions of people contribute smaller or larger amounts and, together, those contributions make it possible to run a country with schools, hospitals, safety, culture, transport and support for those who need it most.

Where does the money come from?

It is mainly adults who pay. When they get their wages, part of it goes to the State through taxes. They also pay taxes when they buy clothes, food, toys, mobile phones or other products. Businesses pay taxes too, based on the money they earn.

Taxes and fees

Taxes help to fund services that matter to everyone, even if we don’t use them all the time. Fees, on the other hand, are usually paid when someone uses a particular service. For instance, when an adult applies for a new Citizen Card, a passport or a licence, they normally pay a fee for that service.

Who benefits?

Lots of people do. Children have public schools and health centres. Older people may receive pensions and healthcare. People who are ill are treated in hospitals and health centres. Anyone who loses their job can receive support for a period of time. And when there are fires, floods or other emergencies, firefighters and the civil protection service are funded with this money as well.

There’s more…

Tax money also pays the wages of teachers, doctors, nurses, firefighters, police officers and many other professionals. It is used to build roads, bridges, parks, libraries, schools and hospitals, and to keep street lighting, gardens and much of public transport running.

Does everyone pay the same?

No. People who earn more money usually pay more tax than people who earn less. The idea is to help ensure that each person contributes fairly, according to what they can afford.

Some of the names

In Portugal, one of the best-known taxes is IVA, which is already included in the price of the products we buy. There is also IRS, which is paid on people’s income, and IRC, which companies pay on their profits. You don’t need to memorise these names right now, but it’s useful to know there are different types of tax for different situations.

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