If this is the first time you use this feature, you will be asked to authorise cambridge core to connect with your account. The correlation between corporate income taxation and economic growth is more robust. The ability to pay theory of taxation pigou, 1920 is synonymous with the principle of equity or justice in taxation. July 5th to august 6th 2009 at the moi university main campus. Kenyas tax system has undergone almost continual reform over the last 20 years. Kenya has reached its taxyield target of 22 per cent by reducing reliance on direct taxes and trade taxes. The first formal tax, the hut tax, was introduced in 1900. At independence, kenya adopted a taxation system whose principles and fundamentals were inherited from the british model. Tax losses are an allowable deduction from taxable income for the current and the next nine succeeding years of income with effect from 1 january 2016.
Management and professional fees subject to normal wht rates. At the same time, tobacco taxation can serve the public health goal by reducing tobacco consumption significantly. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Government of kenya first, second half information communication technology integrated financial management information system lower middle income countries kenya economic update kenya mortgage refinance company kenya integrated household budget survey kenya national bureau of statistics macroeconomic and fiscal model nairobi security exchange. By studying taxation behavior in five different countries usa, gambia, nigeria, south africa and kenya, derwent 2000 concluded that increased tax burden is a major threat on the overall growth of smes. Lecture delivered during fulbright hays group project abroad program.
Economic aspects of british colonialism in kenya, 1895 to 1930. Taxation is the key source of revenue that the government of kenya uses to provide public services to its citizenry. Background to taxation 1 introduction to taxation the evolution of taxation is attributed to the development of the modern state, which led to increased expenditure for infrastructure and public services. In 1802, the administration of president thomas jefferson abolished the federalist system of internal taxation, but during the war of 1812, congress restored such taxation on an emergency basis. In addition to the printed version of the wwtg, individual country taxation guides are available in pdf format which can be downloaded from the pkf website at pkf international limited may 20 pkf international limited. The report was jointly authored by all four researchers and coedited by matti kohonen and attiya waris. Kcse history and government notes form 1 to form 4. It was formerly known as taxpayer services under the commissioner for corporate support services.
Kcse history and government notes form 1 to form 4 kcse. The original idea of a tax was that payment was not obligatory upon the subject, but consisted rather as a voluntary contribution toward the expenses of government, as appears from the medieval latin term. For these reasons, we believe that consideration of evasion, avoidance, and administration is essential to the positive and normative analysis of. A citizens handbook on 6 taxation in kenya executive summary this handbook attempts to break down kenyas complex tax system into a user friendly form for consumption by the average person.
The government provides free primary and secondary education. It finds that tax policy has shifted towards greater. The effects of tax policy reforms on tax revenue in kenya kanyi, p. Her phd research centres around the issue of the connection between tax revenue and expenditure and its application to development and the constituency development fund in kenya as seen through the lens of fiscal sociology. Taxation in tanzania presentation by the commissioner for large tax payers of the tanzania revenue authority, mr. In this respect, the tax modernization programme introduced in the country was to achieve a tax system. The tax justice network is an independent organisation launched in the british houses of parliament in march 2003. Jul 15, 20 the government levied taxes on exports and imports.
It appears more reasonable and just that taxes should be levied on the basis of the taxable capacity of an individual. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. At the time, the portuguese and arabs were the primary traders. In 1987 addis ababa taxed all exports at 2 percent and levied an additional export duty and a surtax on coffee. Rutoh 1 introdution excise duty is a duty imposed on specific goods and services manufactured in kenya or imported into kenya as specified in the 1st schedule of the excise duty act, 2015 duty paid on locally. Kenya school of revenue administration post graduate diploma in tax administration history and. Beards, boots, beehives, candles, nuts, hats, horses, chimneys, water tsar peter taxed them all. A citizens handbook on 8 taxation in kenya governments in both developed and developing countries collect taxes to fund public services. A person may apply to the commissioner for an extension. Taxation, imposition of compulsory levies on individuals or entities by governments. One of the key reasons for undertaking tax reforms in kenya was to address issues of inequality and to create a sustainable tax system that could generate adequate revenue to finance public expenditures. In order to provide for these program and services, the government needs revenues. Ca23 public finance and taxation pdf notes kasneb notes. The national educational system consists of three levels.
The history of taxes in kenya dates back to the precolonial period when people paid tithes to trade in different territories of a tribe. View test prep history and background of excise duty. History of taxation in india tax structure in india. Kenya economic update kenya mortgage refinance company kenya integrated household budget survey kenya national bureau of statistics macroeconomic and fiscal model nairobi security exchange nonperforming loans kenya national safety net program national social security fund older persons cash transfer public private partnership proxymeans tests. History is an account of events that took place in the past. Tax notes provides daily news on all taxrelated topics in the u.
I am glad to introduce to you the second edition of the taxation handbook, a guide to taxation in uganda. Property taxation in kenya1 role of property taxes within local authorities in kenya property taxes known as rates provide an average of 20 percent of the total recurrent revenues for local authorities and represent 1 percent of total government tax revenue and 0. Find recent news on tax jurisdiction in kenya, africa. The authors then link tax to demands for reducing poverty and inequality, and study the current measures of the socalled. Kpmg confidential kenya fiscal guide 20172018 3 tax losses. This handbook, has been revised to simplify the laws which. Progressive taxation has put an additional burden of taxation on the poor thus discouraging development. Taxation and developmentagain prepared by michael keen authorized for distribution by michael keen september 2012 abstract issues of taxation and development, which have long been a central concern of the imf, have attracted wider and renewed interest in the last few years. A history of hindrances and limiting factors christopher nulty 09 the beginnings of this paper are rooted in kibera, kenya. This is contrary to the findings of ugwunta and ugwuanyi 2015 which adopted an expost facto research design.
A historical analysis of the kenyan taxation system. Taxation in kenya was first introduced by the arabs who arrived in the kenyan coast around 1498. Instead, the emphasis is on improving tax administration to broaden the tax base so that existing tax rates can be reduced without affecting government revenues. This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable himher to comply with and implement public financial management regulations and compute taxes for various entities. The history of taxes reveals that their coercive nature is of comparatively recent development. If this principle could be implemented, the allocation of resources through the public sector would respond directly to consumer wishes. Pdf history of tax law in kenya augustus m u t e m i. Economic aspects of british colonialism in kenya, 1895 to. We would like to show you a description here but the site wont allow us. Intoduction to public finance and taxation theory public finance is the term, which has traditionally been used or applied to the packages of. Kenya adopted a taxation system whose principles and fundamentals were inherited from the british model.
The affluent had to pay higher taxes as compared to the poor. Even peasants that did not own land had to pay property taxes on land that they rented. All forms of government rule through control of taxation revenues, it has been a necessity of civilization since time began. History of income tax law in kenya augustus mutemi, 2015 in one sense every rule of law, either common law or equity, which has been laid down by the courts, in that course of judicial legislation which has evolved the law of this country, has been based on considerations of public policy. Oct 11, 2017 kautilyas concept of taxation emphasised equity and justice in taxation. The first edition was developed to guide our stakeholders in in complying with tax laws and procedures for central government taxes. According to the former kra commissioner general, kenya has a tax gap of 40%, relatively big compared to tax gaps in developed countries like singapore, new zealand and denmark which have 10% and us. With kenya revenue authority kra as the main tax authority, taxpayer education unit was formed in the year 2005. Ancient civilizations including greeks, romans and egyptians levied different taxes on their people to finance military operations, public services and maintain key strategic reserves of food stocks, gold to mention but a few. African society in precolonial times can be termed as a communistsocialist society where almost all the properties were communally. Import taxes included customs duties and a 19 percent general import transaction tax. The history of taxation is the history of civilization.
May 12, 2015 intoduction to public finance and taxation theory. The history of taxation stretches thousands of years in the past. Most citizens were subject to a poll tax, which was a flat tax on every adult in a jurisdiction, as well as property and church taxes. Interest paid by the government and the central bank of kenya is taxexempt. Introduction to taxation government plays an important role in most modern economies. The issue is no longer increasing revenues by changing the tax structure. Entrance into secondary school is contingent upon obtaining the kenyan certificate of primary education by.
The interesting point which can be underscored is that at all times there was discussion about the correct taxation principles andor the just taxation system and that at no time. It among other issues discusses design of various tax heads, their purposes and. Taxation as understood today was introduced in east africa by the early british colonial administrators through the system of compulsory public works such as road construction, building of administrative headquarters and schools, as well as forest clearance and other similar works. This has enabled the government to finance 60% of the budget. But he is still styled the great in modern histories of russia, perhaps because of the mighty works his taxes produced.
Kenya has the trappings of a modern tax system, including, for example, a creditinvoice vat, a pay as. It has been declared resident by a notice in the kenya gazette by the cabinet secretary for the national treasury nonresident companies nonresident company with a permanent establishment in kenya. Because of a policy of encouraging new capital investment, the government exempted capital. Public finance is the term, which has traditionally been used or applied to the packages of those policy problems, which involve the use of tax. At the same time, administrative and institutional reforms have taken place. Report of the commission on the financial position and system of taxation in kenya, colonial no. Several ancient civilizations, including the greeks and romans, levied taxes on their citizens to pay for military expenses and other public services. A permanent establishment is a fixed place of business. The coastline of east africa was part of sultanate of oman governed from malindi. In 18, 1815, and 1816, congress enacted direct taxes on houses, lands, and slaves, and apportioned them to the states on the basis of the 1810 census. Click the link below to download the full history form 4 notes pdf document, with all the topics. Kenya s taxation system covers income tax, valueadded tax, customs and excise duty.
The taxation system then mimicked the islamic law as well as the trade rules. Fair taxation was a key issue for many english citizens during the medieval period. Under the benefit principle, taxes are seen as serving a function similar to that of prices in private transactions. The basic principles of taxation are nearly as old as human societythe history of taxes stretches thousands of years into the past. People with higher incomes should pay more taxes than people with lower incomes. Over the last decade tax performance in kenya has significantly improved in nominal terms averaging about 24% of the size of the economy. Oct 02, 2008 beards, boots, beehives, candles, nuts, hats, horses, chimneys, water tsar peter taxed them all. Book a beginners guide to kenyas tax laws saturday june 1 2019 kenya revenue authoritys head office at times towers in nairobi, as pictured on june 14, 2018. Each of the islands was allowed to run their own affairs and collect taxes for the sultan. A historical analysis of the kenyan taxation system, authorwaris attiya, year2007 waris attiya 272 attiya waris is an assistant lecturer, department of commercial law, school of law of the university of nairobi in kenya. Department of history, political science and public administration.
1462 547 783 91 97 1111 139 1245 292 1360 554 1590 53 848 649 1109 259 1137 1121 1280 782 1353 597 1081 560 559 375 894 189 1156 1265 701 1112 1426 1266 1472 1099 1050 646 245