Why do developing countries rely more on indirect taxes as a source of revenue?
- They are relatively easy and cheap to collect / economical.
- They are difficult to evade because people do not have alternative but to pay them as they consume products
- They are less avoided due to limited loopholes that are found in the laws that set them up.
- They are more flexible / elastic.
- They are convenient to the tax payer as they are hidden in prices of goods and services.
- They are impartial i.e. non discriminative.
- They are comprehensive hence yield more revenue to government.
- They are less resented (politically).
CATEGORIES Economics
TAGS Dr. Bbosa Science
