Abstract:
The main objective of this proposal/ study was to identify and analyze the effects of taxation on economic performance in Embu county government. There are different types of taxes i.e. income tax which is mainly imposed on employment income or rent income, capital gains tax (CGT) that charged on the whole of gain which accrues to a company or individual upon transfer of property in Kenya, withholding tax (WHT) which is deductible from certain classes of income at the point of making payment, value added tax (VAT) is charged on supply of taxable goods and services in Kenya. Taxation is one of the ways the county government is obtaining its revenue. The level of taxation thus affects the general economic growth and the development of the county. Agriculture i.e. rice farming, livestock keeping and macadamia nuts production is the main economic activity in the county and it has increased the economic performance in Embu county for a long period of time.
