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Importance Of Sociology In The Society

651 words - 3 pages

NAME; KEVIN KAMAU MUKONO
REG NO; HD231-6231/2012
COURSE; BACHELOR OF COMMERCE
UNIT; TAXATION
UNIT CODE; HBC 2211
GROUP I
ASSIGNMENT 1
TASK; Explain the fiscal policies reforms the government has undertaken over the years in respect to tax reforms In Kenya.

Kenya’s tax system has undergone more or less continual reform over the last twenty years. On the policy side, rate schedules have been rationalized and simplified, a new value-added tax introduced, and external tariffs brought in line with those of neighboring countries in East Africa. At the same time, administrative and institutional reforms have taken place. Most notable among these was the creation of the semi-autonomous ...view middle of the document...

However, the macro-economic and fiscal performance continued to deteriorate throughout the late 1980s and 1990s. The average economic growth rate between 1992 and 2001 was -0.3% .
The Economic Recovery Strategy for Wealth and Employment Creation, which was implemented by the new regime from 2003 to 2007, was successful in reversing the economic decline of the past two decades. In 2007, for the first time since the 1970s, the annual rate of real GDP growth reached 7%. While the post 2007 election violence and onset of the global financial crisis resulted in a slump in real GDP growth in 2008, to 1¾% (IMF, 2010), it is projected that GDP growth will be about 5% in 2010.

In the short-to-medium term, the authors suggest that there are four key fiscal governance drivers.
I. An expensive bureaucracy, as reflected in Kenya‟s wage bill to GDP ratio compared to other countries in the region, needs to be sustained. In 2007/08 the wage bill to GDP ratio was estimated to be 7.4% (IMF, 2010), which was the...

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