Unformatted text preview: 2. Regulation
raises public revenue through taxation but also
imposes restrictions on the use of certain goods and
services in a way desirable and respectable for a
healthy state of society.
3. Reduction of Inequalities in Income and Wealth:
The objective of the taxation is to redistribute income
and wealth in such a way to ensure just and equitable
distribution. This is possible by taxing rich people
heavily and less tax on the poorer.
13 Objectives of Taxation
4. Promotion of Capital Formation: One of the
objectives of taxation is to make more saving and
promote capital formation.
5. Economic Stability and Maintaining Full
Employment: Low rate of taxation during depression
shall accelerate more income to the people and help
in raising demand and thus revive.
On the contrary, high rates of taxes and additional
taxes may be useful to check inflationary pressures on
prices. 14 Objectives of Taxation
7. Increase in National Income: Tax is the main
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- Winter '12
- The Land, canon, public revenue