2. TAX TAXATION IS THE BIGGEST SOURCE OF PUBLIC REVENUE OF THE MODERN GOVERNMENT.IT IS THE LEGAL DUTY OF EVERY CITIZEN OF A COUNTRY TO PAY HONESTLY, IT MAY BE LEVIED ON INCOME,PROPERTY AND EVEN AT THE TIME OF PURCHASING A COMODITY.IN SIMPLE WORDS, IT IS A COMPULSORY PAYMENT BY THE PEOPLE.
3. CHARACTERISTICS 1.A GOOD TAX SYSTEM WOULD CAUSE MINIMUM AGGREGATE SACRIFICE.THE ALLOCATION OF TAXES AMONG TAX PAYERS IS MADE ACCORDING TO THE ABILITY TO PAY. 2.IT SHOULD ENSURE MAXIMUM SOCIAL ADVANTAGE. 3.IN A GOOD TAX SYSTEM,TAXES ARE UNIVERSALLY APPLICABLE WITH THE SAME ABILITY TO PAY, ARE TREATED WITHOUT ANY DISCREMINATION 4. A GOOD TAX MUST FOLLOW MOST OF THE CANONS OF THE TAXATION TO THE POSSIBLE EXTENT. 5. A GOOD TAX SYSTEM SHOULD HAVE THE QUALITY OF SIMPLICITY SO THAT IT MAY NOT BE IMPOSSIBLE TO ENFORCE THEM. 6. THE TAX SHOULD BE ACCEPTABLE TO THE PUBLIC IT SHOULD BE CONSISTENT WITH THE PEOPLES CAPACITY. 7.THE BALANCE SHOULD BE MAINTAINED BY IMPOSING ALL TYPE OF TAXES . 8. IT SHOULD BE DESIGNED TO TAP THE SURPLUS RESOURCES AND PROPERLY UTILISED FOR THE COMMON WELFARE.
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5. CANON OF CERTAINITYTHE TIME OF PAYMENT AMOUNT TO BE PAID METHOD OF PAYMENT PLACE OF PAYMENT THE AUTHORITY TO WHOM THE TAX TO BE PAID
6. CANON OF CONVENIENCECANON OF ECONOMYCANON OF PRODUCTIVITYCANON OF ELASTICITYCANON OF DIVERSITYCANON OF SIMPLICITYCANON OF EXPIDENCYCANON OF COORDINATIONCANON OF NUETRALITY
