Public finance: notes of lecture 1

Abstract

Taxation is very much a product of history. To find the theoretically ideal system of taxation is less important than to find a system historically justified that achieves its purpose without abruptness. Tax reforms with their immediate, often disagreable consequences for large parts of the population are likely to induce sharper reactions than most other economic reforms.The historical situation in Africa in relation to taxation is particularly complicated. Which elements of tax system mostly dating from the colonial period, are considered to be equitable and acceptable? In Africa it is likely that history has to be strengthened by sociology to arrive at the right divisions.