advantage to direct tax
Answers
Answer:
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▶️A great advantage of direct tax is that it helps the economy to achieve that. As the government charges more taxes from the people who can afford them and spend that money on the poor, a step in the right direction is made.◀️
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Explanation:
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Answer:
1. In Accordance with the Canon of Equality
2. In Accordance with the Canon of Certainty
3. Creates Social Awareness
4. Creates Equal Distribution of Wealth
5. Elastic and Anti-Inflationary in Nature
6. Affects Savings and Investments
Explanation:
Advantages of Direct Taxes:
(i) Economical - Direct taxes are economical in the sense that the cost of collecting these taxes is relatively low as they are usually collected at source and they are paid to the government directly by the taxpayers.
(ii) Certainty - Direct taxes satisfy the canon of certainty. The taxpayers know how much they have to pay and on what basis they have to pay. The government also knows fairly, definitely the amount of tax revenue it will receive. Thus, direct taxes satisfy the canon of certainty.
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