-To cover cost of administration by the government.
-To reduce inequality of income through progressive taxation.
-Aims at controlling consumptions of commodities and services regarded harmful to the people such as beer.
-Used to stabilize the economy.
-For redistribution of labour
-Can be used to promote exports by discouraging imports.
-To strategic domestic industries
-To reduce the rate of inflation or control it
-May be used to control rural-Urban migration.