Critical Reasoning – Should octroi be abolished? Statement: Should the local tax called octroi be abolished? Arguments: I. Yes. Abolishing octroi will eliminate an important source of corruption. II. No. Abolishing octroi will adversely affect government revenues.

Introduction / Context:
This is a policy trade-off. We evaluate whether each side gives a valid, decision-relevant reason. Octroi is a point-of-entry levy; arguments typically involve governance quality and fiscal impact.

Given Data / Assumptions:

• I claims corruption risk is tied to octroi check-posts and discretionary assessments.
• II claims octroi contributes to local revenues.
• No alternative revenue mechanisms are specified.

Concept / Approach:
A strong argument may highlight a core benefit (anti-corruption) or a core cost (revenue loss). Both can be simultaneously strong because policy decisions often involve balancing such considerations.

Step-by-Step Solution:

Verification / Alternative check:
Even if one designs e-tolls or compensatory grants, the two considerations remain central: integrity and revenue. Thus both are decision-relevant and strong.

Why Other Options Are Wrong:

• Only I or only II ignores the legitimate countervailing concern.
• Either/Neither misread the policy trade-off nature.

Common Pitfalls:
Treating policy choices as single-factor decisions; ignoring fiscal sustainability.

Final Answer:
Both I and II are strong