Question

How does improving tax administration contribute to resource mobilisation?

• A. By increasing government spending on social welfare programs.
• B. By reducing tax evasion and improving collection efficiency.
• C. By reducing the overall tax rates to encourage economic growth.
• D. By simplifying the process of obtaining government loans and subsidies.

Answer 1

Answer:

B. By reducing tax evasion and improving collection efficiency.

• Effective tax administration ensures that taxes due are actually collected.

• This includes measures like using technology to track transactions, and cracking down on tax evasion