Filed under Taxation Revision Name five objectives of raising taxes and explain how they are achieved by the government Published by on Objectives of raising taxes Pension of social and merit goods and services by the government such as roads, health, Education etc. Efficient allocation of resources e.g. tax the rich more and use taxes to alleviate poverty among low income groups. increasing taxes, and thus reducing disposable income available on individuals. Protect local industries e.g. raise the customs duty on imports to discourage consumption of import and encourage consumption of local goods and production. Creation of employment e.g. government could impose more taxes to reduce investment in private sector (“crowding out” effects) and invest more in public sector to create employment opportunities. Share throughShare to Download Related Posts Should citizens feel obliged to pay tax? Explain Explain the tax position of the income of a deceased person State and briefly explain the factors that influence tax shifting. DTE History and Government Paper 1 March April 2018 Past Paper Name and briefly explain four major principles of a good tax system Is Value Added Tax (VAT) a direct or indirect tax? Explain Suggest three possible ways in which the Government may prevent loss of tax revenue from imports Suggest and explain one proposal on how the Government can be able to generate tax revenue from the informal sector. “Governments in developing countries tend to overtax individuals in formal employment”. Using suitable explain why Governments find it convenient to continually raise higher taxes on earnings from formal employment. The recent debate relating to importation of goods through the port of Mombasa has had one of its issues the amount of tax assessed. Specify and explain clearly at least three ways in which the Government may lose tax revenue on imports.