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 Form 4 KCSE Exam Standard History and Government Paper 1 Questions and Answers

Explain the purpose of taxation in Kenya.

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Answer Text:
-To cover cost of administration by the government.
-To reduce inequality of income through progressive taxation.
-Aims at controlling consumptions of commodities and services
regarded harmful to the people such as, beer.
-Used to stabilize the economy.
-For redistribution of labour.
-Can be used to promote exports by discouraging imports.
-To strategic domestic industries
-To reduce rate of inflation or control it.
-May be used to control rural-Urban migration.