TAXATION AND INFLATION IN KENYA

Kiganda, Evans Ovamba

dc.contributor.author	Kiganda, Evans Ovamba
dc.date.accessioned	2019-10-17T07:23:53Z
dc.date.available	2019-10-17T07:23:53Z
dc.date.issued	2019-09
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dc.identifier.issn	2321–2705
dc.identifier.uri	http://erepository.kafuco.ac.ke/123456789/44
dc.description.abstract	Taxes remain a major source of revenue for a country and can have several impacts on the economy. Studies examining the influence of taxation on inflation have reported mixed results and did not break down taxation into its components. This creates uncertainty with regard to the influence of taxation components like excise duty (ED), import duty (ID), income tax (IT) and Value Added Tax (VAT) on inflation. This study’s objective was to establish the influence of taxation on inflation in Kenya to bridge the knowledge gap. Monthly time series data from Central Bank of Kenya spanning 132 months from 2005 to 2015 was used for analysis based on variance decomposition and impulse response analysis. Results indicated that total tax had a positive influence on inflation. However, influence was highly due to indirect taxes. In view of this, the study recommends adoption of fiscal policy that target reduction in taxation that are likely to lower production costs leading to a reduction in inflation in Kenya.	en_US
dc.language.iso	en	en_US
dc.publisher	International Journal of Research and Scientific Innovation (IJRSI)	en_US
dc.relation.ispartofseries	Volume VI;
dc.subject	Inflation, taxation, Kenya	en_US
dc.title	TAXATION AND INFLATION IN KENYA	en_US
dc.type	Preprint	en_US