Question

QUESTION 1
Assume you are a fresh graduate from UPSA with Public Finance as one of your specializations. You have been employed by the Ministry of Finance in your country. The government of your country is in the process of designing a better tax system in order to maximize revenue for accelerated economic development.

a. Your superior has assigned you the task of assisting in designing the new tax system. Discuss what a good tax system would require and explain the specific economic challenges that affect taxation in your country.                                                                                                                             

b. Explain two (2) major reasons why the incidence of taxation should be of paramount importance to the Government.                                                                          

c. Discuss four (4) major recommendations you would offer a neighboring country that is in the process of introducing VAT in their country.                                          

Answer 1

A. A good tax system requires that there should be proper collection of taxes and there should be proper allocation of the taxes to the different section of the society so that there should be economic equity and there should not be an economic disparity in the country.

good tax system is also proactive in nature and it should be always determining the various events of the economy in advance, and it should then formulate the tax structure in order to counter those economic scenario

A good tax system should always be keeping into the account various interest of private and public enterprises as well as various individuals so that they should be promoted and provide with various incentives in order to obey with the tax system

B.two major reasons why incidence of taxation should be of paramount importance because-

1. The economic disparity should not be promoted and hence there is an incidence of taxation appropriately defined

2.it is also appropriate because tax structure should be proactive in nature in order to counter various economic adverse events

C. Four major recommendation would be-

A. Centralised collection system should be properly put into practice

B. Tax collections should be made online

C. The proper credit is to be provided to the public so that a fair system could be promoted

D. Taxes refund are to be provided in time.