11. Single And Multiple Tax System: Single Tax System Means

11. SINGLE AND MULTIPLE TAX SYSTEM: Single tax system means only one kind of tax. A single tax denotes the only tax exclusive tax on the one class of things. The single tax might be proportional progressive or regressive. It may be for a single fixed amount. According to Seligman “A single tax denotes the only tax, on exclusive the one class of things” ORIGIONS OF TAX SYSTEM: a) In 17th & 18th centuries, people advocated a single tax on expenses. b) In 18th century England there was demand for a single tax on houses. c) Some French economists advocated a single stamp tax. d) MERITS OF SINGLE TAX SYSTEM: a) The greatest merit of single tax is it simplicity. Since there is only one tax work of the govt is simplified. b) Levy assessment and collection of revenue would become very easy. c) Levy and collection of tax can be bad if tax concerned is carefully selected. DEMERITS OF A SINGLE TAX SYSTEM: a. The greatest defect of the single tax system is that from the revenue point of view the tax yield may not be sufficient for the govt. b. Yield of any single tax does not increase rapidly as the yield from multiple taxes system. c. Increase in the rate of tax alone cannot increase revenue. MULTIPLE TAX SYSTEM: Multiple tax system means a tax system comprising several types of taxes. They may include both direct taxes and indirect taxes. MERITS OF MULTIPLE TAX SYSTEM: a. Multiple tax system generally results in equitable tax burden since it is compowd of direct and indirect, proportional and progressive taxes. b. It is difficult for individuals to evade taxes altogether. c. It is more useful to achieve social and political objectives. d. Tax system becomes broad based and even covers every sector in the country.

CONCLUSION: ACC TO DALTON “It is better to rely on a few substantial taxes for the bulk of revenue”. Economic necessity and feasibility should be the guiding principles in deciding how many taxes should be imposed.

10. SINGLE AND MULTIPLE TAX SYSTEM: Single tax system means only one kind of tax. A single tax denotes the only tax exclusive tax on the one class of things. The single tax might be proportional progressive or regressive. It may be for a single fixed amount. According to Seligman “A single tax denotes the only tax, on exclusive the one class of things” ORIGIONS OF TAX SYSTEM: e) In 17th & 18th centuries, people advocated a single tax on expenses. f) In 18th century England there was demand for a single tax on houses. g) Some French economists advocated a single stamp tax. h) MERITS OF SINGLE TAX SYSTEM: d) The greatest merit of single tax is it simplicity. Since there is only one tax work of the govt is simplified. e) Levy assessment and collection of revenue would become very easy. f) Levy and collection of tax can be bad if tax concerned is carefully selected. DEMERITS OF A SINGLE TAX SYSTEM: d. The greatest defect of the single tax system is that from the revenue point of view the tax yield may not be sufficient for the govt. e. Yield of any single tax does not increase rapidly as the yield from multiple taxes system. f. Increase in the rate of tax alone cannot increase revenue. MULTIPLE TAX SYSTEM: Multiple tax system means a tax system comprising several types of taxes. They may include both direct taxes and indirect taxes. MERITS OF MULTIPLE TAX SYSTEM: e. Multiple tax system generally results in equitable tax burden since it is compowd of direct and indirect, proportional and progressive taxes. f. It is difficult for individuals to evade taxes altogether. g. It is more useful to achieve social and political objectives. h. Tax system becomes broad based and even covers every sector in the country.

MITATIONS: 1. Numerous taxes in the garb of a multiple tax system can become uncomfortable and annoying to the tax payers and general public and cause inconvenience for tax collection authorities. 2. the canons of economy productivity convenience may be adversely affected because of excessive multiplicity of taxes.