Lecture-9-Public+Revenue+ppp

17 canons of taxation canon of certainty the tax

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Unformatted text preview: Canons of Taxation Canon of Certainty: The tax which each individual is bound to pay ought to be certain and not arbitrary. It implies that the tax-payer should determine the following manners carefully. following the time of payment amount to be paid method of payment the place of payment This certainty creates confidence in taxpayer. On the This other hand, uncertainty makes the tax system arbitrary and unfair and encourages the insolence and favors the invasion. 18 Canons of Taxation Canon of Economy: Every tax has a cost of Every collection. This canon implies that minimum possible expenditure should be made in the collection of taxes. collection All extra vengeance or unnecessary All expenditure in the collection should be avoided at all costs. The revenue from a tax should be very much more than the cost of collection. more 19 Canons of Taxation Canons Canon of Convenience: According to this Canon According canon, taxes should be levied and collected in such a manner that it provides the maximum of convenience to the tax-payers. The mode...
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