Statement Should all the indirect taxes in India be combined into a single tax on all commodities? Arguments I. Yes, this will considerably simplify the tax collection mechanism and the cost of collection tax will also reduce. II. Yes, the manufactures and traders will be benefited by this which in turn will be boost tax collections. III. No, no other country has adopted such system.
Correct Answer:
Explanation:
Argument I and II are strong because a single tax will simplify the tax collection mechanism and manufactures and traders will be benefited by it. What other countries are doing, we should not adopt that blindly. So, Argument III is not strong.
