Source of the government income this income is used

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: source of the government income. This income is used for productive purposes and thereby overall production is increased. This increase in production leads to increase in national income of the country along with increase in per capita income. 15 Canons of Taxation Canons of taxation refer to the administrative aspects of Canons a tax. They relate to the rate, amount method of levy and tax They collection of a tax. collection In other words, the characteristics or qualities which a good tax should possess are generally described as good canons of taxation. canons Adam Smith has enumerated the following four canons of taxation which are accepted universally: Canon of Equality Canon of Certainty Canon of Economy Canon of Convenience 16 Canons of Taxation Canon of Equality: According to this canon, a good tax is that is levied according to the tax paying capacity of the individuals. In other words, the burden of taxation should be fair and just. Thus, rich people must be subjected to higher taxation in comparison to the poor. 17...
View Full Document

Ask a homework question - tutors are online