- 5 Marks
TX – May 2019 – L3 – Q1d – Tax Planning
Discuss circumstances under which government should run state enterprises as business entities to increase revenue.
Question
Some political analysts have often made the claim that governments over the world should create enabling environments for private businesses to flourish, including granting tax incentives as a way of creating jobs for the unemployed youth, and that governments should not directly engage in business. They sum this up often with the statement that “Government has no business doing business.” Others, however, hold a contrary view on this matter, making this an endless debate.
Required:
Under what circumstance would you encourage the running of state enterprises as business entities by the government to increase revenue as against the imposition of new taxes for the same purpose?
(5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Government Policy, Public Sector, Revenue Generation, State Enterprises, Taxation
- Level: Level 3
- Topic: Tax planning
- Series: MAY 2019