Click on the play button to view inauguration of a CDF project.
Click play button to view people file their annual tax returns at Kenya Revenue Authority Headquarters.
Government provides public service such as health.
Click play button to view recurrent expenditure by government.
Click play button to view development expenditure by government.
Click on the play button to view public road.Public expenditure should benefit as many people as possible.
Click on the play button to view public school constructed using CDF funds.Public expenditure should be sanctioned to avoid wasteful expenditure.
Demerits of direct taxes
- The tax payer bears the burden and impact of the tax.
- Some incomes that are irregular may be problematic to asses for payment of taxes and the state may lose revenue.
- May not be paid by all income earners especially low income ones due tax exemptions yet they may benefit more from public goods and services.
- Payment is mandatory for those in the tax bracket.
- Reduces disposable income thus limiting savings.
Indirect tax is tax imposed on consumption of goods and services.
Merits of indirect taxation
- High amounts are collected because it is based on a wide range of essential commodities
- It can be used to reduce consumption of harmful products.
- It is easier to change the tax rate on the commodities depending on the government revenue requirements.
- Difficult to evade as tax is factored in the price of commodities.
- One can avoid the tax by not consuming the products.
Demerits of indirect taxes
- It is expensive to administer as tax inspectors are employed to
ensure collection and remittance is done to relevant authorities.
- Uncertainty in revenue collection as the tax amount collected depends on the goods and services purchased.
- Increases prices of commodities as the tax is inclusive of the price.
- Low savings because the income that could have been saved is used to buy high priced goods.
- It can be manipulated as dishonest business people can evade tax by not disclosing correct sales figures leading to less tax being collected by the government.
Buy e-Content Digital CD covers all the topics for a particular class per year. One CDs costs 1200/-
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KCSE ONLINE WEBSITE provide KCSE, KCPE and MOCK Past Papers which play a great role in students� performance in the KCSE examination.
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