(i) Economical:
- Low cost of collection to the tax body
Low compliance costs by the taxpayer.
(ii) Equity:
Horizontal equity: People with the same economic position should pay equal amount of tax.
Vertical equity: Consideration is taken as to whether tax payable should be proportional to income i.e progressive or regressive.
(iii) Certainty:
Clear to taxpayer what his liability actually is and how it arises To the tax body it is guaranteed of the amount of revenue its going to collect
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