Describe six principles of taxation

      

Describe six principles of taxation

  

Answers


Simon
• The canon of equality. This means that every person should pay the tax according to his ability and not the same amount. Everybody should pay tax but not at the same rate.
• The canon of certainty. It means that the tax payer should know what, when and how to pay such tax so that an evasion become difficult. The state should also be certain about the amount of tax revenue and time it is expected to flow in the exchequer.
• The canon of convenience. The time and manner of payment should be convenient tio the payer.
• The canon of economy. It should be economical for the state to collect so that its benefits should be greater than the cost of collection. It should be economical to the tax payer.
• Simplicity. The tax should be simple, 00[plain and intelligible to the common tax payer.
• The canon of productivity. A tax should be productive in the sense that it should bring large revenue which should be adequate for the government though it does not mean that in its effort to raise more revenue, the government should tax people heavily.
• Taxable capacity. This refers to the maximum tax which may be collected from a tax payer without producing undesirable effects on him. A good tax ensures that people pay taxes to the extent they can afford it.

skilled writter answered the question on May 3, 2018 at 17:24


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