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Regulation the raises public revenue through taxation

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Unformatted text preview: 2. Regulation The 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. healthy 3. Reduction of Inequalities in Income and Wealth: 3. Reduction 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. heavily 13 Objectives of Taxation 4. Promotion of Capital Formation: One of the 4. Promotion objectives of taxation is to make more saving and promote capital formation. promote 5. Economic Stability and Maintaining Full 5. Employment: Low rate of taxation during depression Employment: 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. prices. 14 Objectives of Taxation 7. Increase in National Income: Tax is the main 7....
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