Purposes of Taxation in Kenya

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The government came up with the body of Kenya revenue authority to collect taxes from its people. Taxes play crucial roles in helping in the development of various governments sponsored projects for better performance. Several reasons make it important for taxation to be conducted in the country and the following are some of the major reasons.

Raising revenue

The mount collected from people can be used to maintain the level of peace and security of Kenya and also the social welfare of people. It is important that taxes be collected from people so as to have ways of improving the social lives of people in the various residents of the country.

Economic stability

The government needs to carry out taxation so that during inflation unnecessary expenditure from people can be discouraged at greater levels. Economic stability is well achieved of the Kenyan government has better rates of taxation from its citizens without making the feel to be paying more money.

Protection policy

The government should have policies that can be used to protect local industries hence raises the amount of tax imposed on visitors or any other foreign groups that have interest in carrying out trade with the nation of Kenya. It is therefore important for the government to take the factor more seriously.

Social welfare

Some commodities such as alcohol are harmful for human consumption making it necessary for the government to discourage the continuous use of such products by imposing heavy taxes on those that consume and use it for their own reasons.

Fair distribution of income

The less disadvantaged groups of society have poor access to good facilities due to high rates of inequality in the country. When taxes are charged, it makes it easy for the government to distribute resources that are lacking to the rural and poor areas of the country.

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