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Q: What are 5 characteristics of a good tax system?
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What Are characteristics of Good Tax system?

1) Equity- Taxes should be fair, and certain taxes should be given to taxpayers with similar characteristics. Could be on ability to pay. Example: Height tax is unfair.2) Non-Distortionary- Taxes should not affect economic behavior. For example, they should not be so high that they discourage people from working.3) Certainty- People and firms should know when a tax should be paid (and how much). Taxes should be stable, so that people and firms can plan their finances.4) Convenience- It must be simple and easy for people and firms to pay their taxes on a regular basis. For example, income taxes are collected by employers on a monthly basis from the salaries of the workers.5) Simplicity- Taxes should be simple to understand. If they are too complicated, calculating the tax owed might be difficult.6) Administrative Efficiency- Taxes should be cheap (and easy) to collect. There is no point in introducing a tax that costs more to collect than it generates in revenue.


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How do you calculate Sales tax in Pakistan?

Sales tax = cost of good + (cost * percentage of tax given) For example: You buy a car for Rs.20,000 and pay 5 % in tax. How much is tax? Tax = 20,000 * 5% = 1000 The cost with tax is 20,000 + 1000 = 21,000 The sale tax is 1000.


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Robert Morris proposed a 5 percent tax on imported goods to help pay the national debt Robert Morris proposed a 5 percent tax on imported goods to help pay the national debt


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