Question

State two main categories of tax previously collected by government.​

Answer 1

Answer:

There are two main categories of taxes, which are further sub-divided into other categories. The two major categories are direct tax and indirect tax. There are also minor cess taxes that fall into different sub-categories. Within the Income Tax Act, there are different acts that govern these taxes

Answer 2

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• The belief that taxes should be based on the individual's ability to pay, known as the ability-to-pay principle
• The benefit principle, the idea that there should be some equivalence between what the individual pays and the benefits he subsequently receives from governmental activities.