In many companys, firms and organizations. Indirect taxes still yield a very high proportion of total tax revenue. This is for the following reasons:
1. Relatively small number if people in wage employment: A greater percentage of the working population is self determined by the company or organization, many of them usually give false declarationas of income and profits, there is therefore a high incidence if tax evastion which can directly leads to low amount of revenue from personal income tax .
2.Low income: in most companys there is generally a low level of income. Wages and salaries paid to those in wage employment are relatively low. The majority of those who are self employed have a low incomes. The amount of tax realised from personal income ia therefore small.
3. Predominance of subsistence production: many workers in a company, firm or organization mainly for self consumption; that is, for the consumption of themselves and their families. It is therefore difficult to assess the actual income of many workers since many products are not been marketed. There is a high possibility and tendency for personal income to be under assessed, and so, the amount of tax which can be raised is small.
1. Relatively small number if people in wage employment: A greater percentage of the working population is self determined by the company or organization, many of them usually give false declarationas of income and profits, there is therefore a high incidence if tax evastion which can directly leads to low amount of revenue from personal income tax .
2.Low income: in most companys there is generally a low level of income. Wages and salaries paid to those in wage employment are relatively low. The majority of those who are self employed have a low incomes. The amount of tax realised from personal income ia therefore small.
3. Predominance of subsistence production: many workers in a company, firm or organization mainly for self consumption; that is, for the consumption of themselves and their families. It is therefore difficult to assess the actual income of many workers since many products are not been marketed. There is a high possibility and tendency for personal income to be under assessed, and so, the amount of tax which can be raised is small.
