Tax Function

Taxes have a very important role in the life of the state, particularly in the implementation of development as a source of state income tax to fund all expenses including development expenditure. Based on above, the tax has several functions, 

Budget function (budgetair)
As a source of state revenue, taxes serve to finance the expenses of the state. To carry out routine tasks and carry out the construction of the state, the state requires a fee. This fee can be obtained from the tax revenue. Currently, taxes are used to finance routine as personnel expenditure, spending on goods, maintenance, and so forth. To finance the construction, saving money is spent from the government is that domestic revenues minus expenditures. The government savings from year to year should be increased according to the needs of the ever increasing development financing and is primarily expected from the tax sector.

Function set (regulerend)
Government can regulate economic growth through tax policy. With the function set, the tax could be used as a means to an end. For example in order that capital investment, both domestic and abroad, given the wide range of tax relief. In order to protect domestic production, the government set a high import duties on foreign products.

Stability function
With the tax, the government has the funds to implement policies related to price stability so that inflation can be controlled, This can be done for example by regulating the circulation of money in the community, collecting taxes, use taxes are effective and efficient.

Functions of redistribution of income

The tax levied by state will be used to finance all public interest, as well as to finance the building so it can open up employment opportunities, which in turn will be able to increase incomes.

Source : http://korandemokrasiindonesia.wordpress.com/2009/11/28/aturan-dan-hukum-perpajakan-di-indonesia/