Statement–Argument (Single Indirect Tax on All Commodities): Statement: Should all indirect taxes in India be consolidated into a single tax on all commodities? Arguments: I) Yes, it would simplify collection and reduce administrative cost. II) Yes, manufacturers and traders would benefit, boosting collections. III) No, since other countries have not adopted such a system. Choose the strongest evaluation.

Introduction / Context:Consolidating indirect taxes can streamline compliance and reduce cascading, provided design handles rates, exemptions, and input credits.

Given Data / Assumptions:

• Simplification can cut administration and compliance costs.
• Business benefits do not automatically “boost” collections; rate/credit design matters.
• Policy merit is not proven by foreign adoption patterns alone.

Concept / Approach:I is strong—administrative simplicity is a valid objective. II is speculative (benefits may or may not raise revenue). III is a bandwagon appeal, not a substantive reason.

Step-by-Step Solution:I: Directly supports efficiency ⇒ strong.II: Causal leap from benefit to higher collections ⇒ weak.III: “Others don’t do it” ≠ evidence ⇒ weak.

Verification / Alternative check:Real-world implementations hinge on design (multi-rate vs single-rate, credits), not mere consolidation.

Why Other Options Are Wrong:Including II/III validates weak reasoning; “None” ignores I’s clear merit.

Common Pitfalls:Assuming uniform gains without design specifics; deferring to international imitation.

Final Answer:Only I is strong.