According to canon of Adam Smith poor should be taxed less and rich should be taxed more
Adam smith
How VAT is related to canon of taxation
how VAT related to canon of Taxation
According to Adam Smith, Good Taxation System based upon the following Principles :(1) Canon Equality or Benefit, (2) Canon of Certainty (3) Canon of Convenience (4) Canon Economy (5) Canon of Productivity (6) Canon of Elasticity (7) Canon of Variety (8) Canon of Simplicity (9) Canon of Expediency (10) Canon of Co-ordination.
The canons or principles of taxation are 1. Economic (cost effective, meaning it should cost less to collect the taxes than the tax revenue) 2. Equity (fair taxation in terms of horizontal and vertical equity) 3. Certainty (people should know how and when to pay) 4. Convenience (simplicity or ease) More details: http://www.bized.co.uk/virtual/economy/policy/tools/income/inctaxth1.htm *Canon of certainty says that tax policies should not alter regularly. and there are some more canons. Such as, 5.Canon of Neutrality (tax policy should not make abnormality in Market) 6.Canon of Incentives (a tax should not harm the factors which motivate economical sectors)
This canon is integrated in the provisions that are deemed favourable to the low income earners. Most VAT legislations entrench provisions for exempted and zero rated items. Most basic food items are zero rated and certain services are exempted from taxation. This makes it possible for low-income earners to afford them. They usually include basic commodities. This is meant to leverage the poor and thereby provide an equitable tax system. Other legislations provide for tax relief especially where there would be hardship or inequity in the recovery of that tax.
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The Canon ribbon is used as a part of Canon's machines. For example, the Canon ribbon might be used for Canon's printers and for Canon's digital cameras.
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Adam Smith supported free markets and the idea of laissez-faire economics. He believed that individuals pursuing their own self-interest would lead to the overall prosperity of society. Smith argued against government intervention and advocated for limited regulation and taxation.
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Pachelbel's Or Canon in D, by Pachelbel.