Why does your country depend more on indirect taxes.
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- Indirect taxes are cheap to collect
- Indirect taxes are difficult to evade
- Indirect taxes tend to form a major source of revenue.
- Indirect taxes can be used to discourage consumption of harmful goods to the society like tobacco.
- Indirect taxes are incentives to work harder so to afford basic necessities.
- Indirect taxes help in stabilization of economy e.g. high import duties improve balance of payment.
- Indirect taxes discourage dumping in the country thereby protecting domestic industries from unfair competitions.
- Indirect taxes are flexible can easily be altered to desired level.
- The government can use indirect taxes to encourage consumption of certain goods by reducing taxes on them.
- Indirect taxes can discourage production of certain goods and channel production resource towards essential goods and services.
CATEGORIES Economics
TAGS Dr. Bbosa Science
