According to this theory, the state should levy taxes on individuals according to benefit conferred on them. This mean that, the more benefits a person derives from the activities of the state, the more he should pay to the government. This theory seeks to ensure that each individual’s tax obligations are as far as possible based on the benefits that he or she receives from the enjoyment of public services
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.The application of this theories in Tanzania is such that there are various taxes(levies) that are collected in the local jurisdictions example, in market, bus stands which are collected by various local government authorities, at the end this fund is further used to develop various social facilities which results to social benefit to the society