Factors affecting Revenue Collection on Second Generation Alcohol by Kenya Revenue Authority in Malindi

Simple item page
dc.contributor.authorApaa, Edward
dc.date.accessioned2021-11-10T07:21:31Z
dc.date.accessioned2022-06-07T06:50:35Z
dc.date.available2021-11-10T07:21:31Z
dc.date.available2022-06-07T06:50:35Z
dc.date.issued2020
dc.descriptionTax Administrationen_US
dc.description.abstractTaxation is defined as a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. The sale of alcohol has long been subject to excise taxation, charged on the production or sale of specific products. The government’s main objective of imposing excise tax is to discourage consumption of taxed alcohol as well as raise revenue. It’s important to note that there’s a very high prevalence of second-generation alcohol outside of government control, example is Chang’aa, Busaa and Mnazi which has adverse effect on loss of revenue. Illicit alcohol by definition means alcohol whose taxes have not been paid or that was manufactured illegally. This study aimed on investigating factors that affect revenue collection on second-generation alcohol by Kenya Revenue Authority in Malindi. The study was guided by a general objective to assess the factors that affect revenue collection on second-generation alcohol by Kenya Revenue Authority in Malindi. The specific objectives were; To find out how Licensing, Infrastructure and Tax polices of Second-Generation alcohol affects revenue collection of second-generation alcohol by Kenya Revenue Authority in Malindi. The study adopted the Cross-sectional research design while adopting a purposive sampling technique of the target population of 202 respondents that comprised of Distributors of the Second-Generation Alcohol and Revenue Officers in Malindi, a Sample Size of 134 respondents was selected to collect data from, using Slovin’s formula. The study administered Questionnaires as the main data collection instrument. Data collected was analyzed using the SPSS 25 and presented; Descriptive data analyzed and presented in the tables focusing on Measures of central tendency and measures of dispersion. Inferential statistics involved the correlation analysis, linear regression analysis. The study found out that all the independent variables had a positive correlation co-efficient with the dependent variable; they had a moderate positive correlation. That is 0.5<r<0.7. Revenue collection had correlation coefficients of 0.559, 0.634, and 0.613 for Licensing, Infrastructure, and audit Tax policies, respectively. Besides, all the independent variables are significant at a significance value of 0.01 significance level. The researcher recommends the following: Alcoholic Drinks Control Act, 2010. Part III – Licensing should be reviewed or repealed to allow for licensing of second-generation alcohol. Consequently, Tax policies should be drafted to address and bring these categories in the tax net, it is not a secret that this sector generates a lot of money that needs to be included in the tax bracket. In “Section 9 on application of licenses states in part that “a person intending to manufacture or otherwise produce any alcoholic drink in Kenya, or to operate an establishment for the sale of an alcoholic drink, shall make an application in a prescribed form to the District Committee in the district where the premises”. This can only be realised with improved infrastructure and accommodative tax policies. To do so, the government must first recognize that Kenya does not have a drinking problem and tax evasion. Lack policy and regulation problem is a major contributing factor to loss of tax on local traditional brews. If only the policy regime that perverse incentives for second generation alcohol producers can be addressed or be cured by an enlightened, rational, evidence-based approach that prioritises, not prohibition, but affordable, legal and safe production of excisable second-generation alcohol, it can be a win-win situation.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/1768
dc.language.isoenen_US
dc.publisherKESRA/JKUAT - Unpublished research projecten_US
dc.subjectTaxationen_US
dc.subjectRevenue Collectionen_US
dc.subjectLicensingen_US
dc.subjectTax Policiesen_US
dc.subjectExcise dutyen_US
dc.titleFactors affecting Revenue Collection on Second Generation Alcohol by Kenya Revenue Authority in Malindien_US
dc.typeProjectsen_US

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Factors affecting Revenue Collection on Second Generation Alcohol by Kenya Revenue Authority in Malindi.pdf
Size:
850.5 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.7 KB
Format:
Plain Text
Description:
Download

Collections

3.2020