| dc.description.abstract | Kenya introduced VAT to replace the Sales Tax which had been in operation since 1973.
VAT has been the choice instrument for unexpected expenditure by increasing VAT rates.
This study evaluates VAT revenue productivity for the period 2009 to 2013. The objective
of this study was to evaluate the effects of VAT reforms on revenue and come up with a
model for predicting VAT revenue financial years 2009 to 2013. The analysis showed that
Vat reforms have a significant effect on VAT revenue. This implies
that the growth in VAT revenue during the period of study was accounted for by
implementation of the reforms. In the VAT revenue equation, the independent variable is
the revenue collected and the dependent are reforms on vat which are online filling of
returns,vat returns and integrated management system
This study provides decision makers with an analytical framework which can be used
to estimate the associated revenues for a VAT in Kenya and guidance to policymakers
in countries planning to introduce a VAT. It identifies the tax reforms on VAT
which when properly understood, documented, and captured in relevant tax
revenue models, would make it possible to estimate accurately VAT revenues within
a specified period of time. Although past studies advocated for raising rates within the
existing system as the most obvious approach for increasing revenues, policy makers
should note that this study finds that the decision has the effect of reducing VAT revenue.
The study also contributes to the existing literature on the VAT structure in Kenya and
stimulates further research in the area of VAT. Researchers should study the effects of
VAT reforms on tax revenue. | en_US |
