Application of eda to trade taxes: A case of import duty and import declaration fee in Kenya

Abstract

Exploratory data analysis methods form an integral part of statistical programmes as a component of a course in basic statistics. In this article a number of useful statistical graphics playa crucial role in the extraction and communication of taxes information in the trade data. This paper aims to explore the Import Duty and the Import Declaration Fees monthly data in the period January 2003 to December 2010, using time series techniques. The time series plots show that there is presence of a trend and an irregular component in both series. The scatter plots depicts that a substantial linear relation exists between the series and its own lagged values, and also a linear relationship exists between the series over the months.