- 10 Marks
PT – Nov 2019 – L2 – Q1a – Overview of the Ghanaian Tax System and Fiscal Policy
Explains five purposes of taxation in a developing economy like Ghana.
Question
Economists are unanimous on the view that taxation is an essential tool for mobilizing
resources for economic development and in particular for a middle-income country such as
Ghana.
Required:
i) Describe briefly FIVE (5) purposes of taxation for an economy such as Ghana.
(5 marks)
ii) Explain the use and application of taxation as a tool of fiscal policy to stabilize the economy.
(5 marks)
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