essay on the role of income tax department in the building of the nation in about 1500 words
Answers
Answered by
4
A tax is a compulsory payment or contribution made by the citizens of a country to the government for the general benefit of the country. There are two main systems of taxation levied by the government which are direct and indirect taxes. Examples of direct taxes are personal income taxes, company taxes, capital gain taxes, toll taxes, poll taxes gift taxes and property taxes to mention a few. Indirect taxes on the other hand include Value Added Taxes (VAT), Tariffs, and import and export duties. Thus taxes of all form could be levied to achieve national goals such as economic stability, equity, economic growth and protectionism. It could as well be employed to mobilize revenue into the nation coffers as reserves.
On the economic stability for example, wild fluctuations (ups and downs) in prices are very harmful for the development of the economy of the country. Declining prices for example, as witnessed during the recent Global Financial Crisis, cause depression which leads to a fall in company profits, saving, investments, employment and the Gross Nation Product (GDP). Conversely, constant rising prices (inflation) do not only create problems of discouraging savings, it makes people with fixed incomes suffer and worsens a country’s balance of payment as well as weakens incentives to improve efficiency on the part of entrepreneurs. When inflation is not checked, it becomes severe and eventually leads to the collapse of a country’s entire economy.
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has just announced the cutting of the prime rate by 200 basis points from 18%% to 16%. This should in fact spur the commercial banks on to reduce interest rates as incentives to encourage borrowing for more investment to create jobs for economic growth. Inflation is nose diving and is currently hovering 16.8%. All these development are healthy sign of economic stability for eventual economic growth which signifies improvement in the general well-being of the people living in the country. The one year administration of the current government has witnessed a contraction of the economy so far with GDP fallen from 7.3% in 2008 to 4.6% in the year ending 2009. A lot of efforts went into the stabilization of the exchange rates and a reduction in inflation had culminated in the lowering the prime rate for the commercial banks to make more loan able funds available to the public all other thing being equal.
On the economic stability for example, wild fluctuations (ups and downs) in prices are very harmful for the development of the economy of the country. Declining prices for example, as witnessed during the recent Global Financial Crisis, cause depression which leads to a fall in company profits, saving, investments, employment and the Gross Nation Product (GDP). Conversely, constant rising prices (inflation) do not only create problems of discouraging savings, it makes people with fixed incomes suffer and worsens a country’s balance of payment as well as weakens incentives to improve efficiency on the part of entrepreneurs. When inflation is not checked, it becomes severe and eventually leads to the collapse of a country’s entire economy.
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has just announced the cutting of the prime rate by 200 basis points from 18%% to 16%. This should in fact spur the commercial banks on to reduce interest rates as incentives to encourage borrowing for more investment to create jobs for economic growth. Inflation is nose diving and is currently hovering 16.8%. All these development are healthy sign of economic stability for eventual economic growth which signifies improvement in the general well-being of the people living in the country. The one year administration of the current government has witnessed a contraction of the economy so far with GDP fallen from 7.3% in 2008 to 4.6% in the year ending 2009. A lot of efforts went into the stabilization of the exchange rates and a reduction in inflation had culminated in the lowering the prime rate for the commercial banks to make more loan able funds available to the public all other thing being equal.
Shubhangi4:
Please mark it as brainliest!!
Similar questions