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The impact of income tax
rates (ITR) on the economic development of Botswana
Bonu N. S.* and Pedro
Motau P.
Faculty
of Business,
University
of
Botswana,
Gaborone, Botswana.
*Corresponding author. E-mail:
bonuns@mopipi.ub.bw.
Accepted
26 March, 2009 |
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Traditional schools of thought advocated the theory of low
income tax rates’ influencing economic development, whereas
modern schools of thought propagated the theory of higher
income tax rates producing greater economic growth,
especially for developed nations. In order to justify these
thoughts an attempt was made taking
Botswana as
a case study to pin point the effect of low and high income
tax rates on economic growth. In this study various
parameters were taken into account including income tax
rates, income tax revenue, total revenue and GDP of the
country in the nominal and real value of the money. It was
located that low income tax rates boosted the economic
growth of
Botswana.
Key
words:
Income tax rates, economic development, nominal, real value
of money. |
