3 Reasos why indirect taxes are much yielded than Direct taxes

Nightmare

Verified member
Credits
$5.00330
There are many reason which made indirect taxes to be more yielded than direct taxes... Below are the top reasons:
1.Relatively few manufacturing industries and companies: industrialisation is still in it's infancy in many companies. In order to encourage the growth of industries, some pioneer industries are granted tax holidays. This reduces the amount of revenue which can be gotten from profits.
2. Inaccessibility of many and the hostility of some rural dwellers: in most companies and organizations many years are inaccessible to tax collectors because of poor transportation facilities. In addition, some natives are hostiles to tax collectors have been manhandled by some group if individuals or workers in the remote of countryside. These favtirs reduce the amount which can be collected as poll tax and personal income tax.
3.Foreign trade oriented economics: in most organizations rely heavily on the world trade. There is a heavy reliance on imported goods and services since most of the goods which are required are either not produced at home or cannot be produced in.. And again, many of them export primary products to the advanced comanies . a lot of revenue is therefore derived from tariffs and from taxes on exported primary products.
 
Top