Question

What do mean by ability to pay ? explain the principle of ability to pay theory of taxation.

Answer 1

i tried to do well in brief. plz read once.

Explanation:

★ Meaning of ABILITY TO PAY:

• It's a "determination the proportional amount of tax levied on an individual based on people's income and capability affording the taxes."

★ Principle:

• The prinviple of ability to pay- it refers to an economic science, which states that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual.

I hope this may help you, what this actually mean.