Ability to pay principle of taxation holds that the amount of taxes people pay :

Which of the following statements are correct?
1. Ability to pay principle of taxation holds that the amount of taxes people pay should related to their income or wealth
2. The Benefit Principle of taxation states that individuals should be taxed in proportion to the benefit they receive from Government programmes
3. A progressive tax takes a larger share of tax from poor families than it does from rich families
4. Indirect taxes have the advantage of being cheaper and easier to collect
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4

Anurag Mishra Professor Asked on 15th February 2016 in General Knowledge.
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  • 1 Answer(s)

    Answer: (a) 1 and 3 only 

    Anurag Mishra Professor Answered on 16th February 2016.
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