In other words, every tax should satisfy the canon of certainty. The tax payer should know in advance how much tax he has to pay, at what time he has to pay the tax, and in what form the tax is to be paid to the government. Adam Smith argued that the taxes should be proportional to income, i.e., citizens should pay the taxes in proportion to the revenue which they respectively enjoy under the protection of the state.Īccording to Adam Smith, the tax which an individual has to pay should be certain, not arbitrary. The rich class people should pay higher taxes to the government, because without the protection of the government authorities (Police, Defence, etc.) they could not have earned and enjoyed their income. According to this principle, every person should pay to the government depending upon his ability to pay. He principle aims at providing economic and social justice to the people. According to Adam smith there are four important canons of taxation which are( canons of equity,certainty,convenience and economy)and other additions like canon of productivity,elasticity,flexibility,simplicity and diversity as discussed below.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |