Economics SSS 2 Third Term

WEEK 2

Elementary treatment of fiscal policy (II)

Performance Objectives

Student should be able to:

1. Distinguish between direct and indirect taxation with an example of each.
2. Recurrent and capital expenditure and analyze the effects and incidence of taxes.

Meaning of Taxation

Taxation can be defined as the means through which Public Finance is raised to finance government expenditures. It typically involves by imposing charges on citizens and corporate entities which they must pay as long as they remain citizens of a country or operate businesses within the territory of a country. In this vein, therefore, taxation can also be defined as the process or method of imposing a compulsory levy by the government or its agency on individuals and firms or goods and services.

Tax, on the other hand, refers to a compulsory levy imposed by the.... View More