Principles of tax laws

[Expensivejoy01]

These are the basic principles or elements or qualities expected in or of a country'stax system. Classical economist and physiocrats (as opposed to the mercantilists) Such as Adam Smith, J.S Mill and J.B Say propounded the following eight principles of a good tax system listed below:-

*} Equality:- a good tax system should be fair to all taxpayers. Everyone should be made to pay his "fair" share.

*} Economical:-
*} Certainty:-
*} Convenience:-
*} Neutrality:-
*} Flexibility:-

 

[kit_hung]

There are fundamental things that make a tax system good. Thinkers like Adam Smith explained that taxes should be fair, with everyone paying according to their ability. This is true equality.

Taxes should also be easy to understand and pay without stress. They should be economical and convenient. The government should not change the law every hour without understanding. Flexibility and neutrality are also important. A good system brings development.