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Why is it important for the government to undertake taxation?

Explain why it is necessary for the government to undertake taxation.

Answers

Maurice
(i) To discourage location of firms in certain areas.

(ii) To bridge the gap between the poor and the rich.

(iii) To control inflation for example, by increasing Pay As You Earn(P.A.Y.E)

(iv) To maintain a surplus balance of payments for example, by imposing high import duties.

(v) To raise government revenue.

(vi) To discourage consumption of certain commodities for example, cigarettes and beer.

(vii) To protect local industries from competition from subsidized imports.

(viii) To discourage dumping.
maurice.mutuku answered the question on July 13, 2017 at 05:39

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