Kenya’s sales taxation incidence analysis

Abstract

The concern of this study was to find out the impact of a sales tax on income distribution. and inflation. The study was also concerned with the effectiveness of sumptuary taxes in reducing the consumption of sumptuary items, namely beer and cigarettes. The main findings of the study are that Kenya's sales tax is regressive and contributes to the country's inflation Progressively across the different income brackets. The study also found out that using real income per capita and price of the sumptuary items, it is impossible to identify the demand curve for the·sumptuary items. Hence it was not possible to determine the effectiveness of the sumptuary taxes, given the data used. -