Current economic issues and Related Economics

Canon of taxation A good taxation system must achieve some major objectives from the justification ground, which is able to turn the taxation system more equitable for the public and at the same time decrease inequality from the society. This principle must be fit for social welfare context also. To achieve this criteria the great economist Adam Smith suggested four important set of principle. This is popularly known as Canon of taxation.Some other economist also suggested some more canon of taxation. The major four canon of taxation which is prescribed by Adam Smith are 1) Canon of equality - taxation is not a process of collection of tax only rather it has some major objectives also. To erase inequality from the society it may takes an important steps. In realistic situation we face income is subject to diminishing marginal utility .That means if income increases the utility derived from the additional unit is decreases. In that case if same percentage of tax is applicabl...

Tax & its types Tax is a compulsory levy which government imposed on us and we are bound to pay from personal obligation without expecting of any return of service or good from the government . Tax is a public revenue. There are small distinctions between public revenue and public receipt .Public revenue is a narrower concept than public receipt. Public revenue includes income from tax, administrative revenue, tax on goods and services, gifts and grants etc.While public receipt include income from all sources, like borrowing, income from sell of asset etc. Public receipt=public revenue+income from all other sources+public borrowing from bank+income of the sale of public asset etc. Public revenue is divided in to two parts . Tax revenue and Non tax revenue. (A)  Tax revenues are 1) Tax on income, expenditure tax, corporation tax and all other taxes related to income. 2) Gift and grant tax, estate duty, wealth taxes are considered as property tax. ...

Now a day’s GST is the most important topic to discuss .As our prevailing Government has change the total indirect tax structure through GST. All we know the full form of GST is Good and service tax but the confusion arises when some commodity is cheaper and some are dearer. In our federal structure there are two types of tax , direct tax and indirect tax . Income tax, interest tax, wealth tax corporation tax all are fall under the direct tax regime &custom duty, excise duty, sales tax, service tax all are example of service tax. As GST is implemented on indirect tax so we have to clear it that our income tax is not takes effect through it. Indirect tax is called regressive tax because when a tax levied to someone it will be passed to the other & the weaker section bear a heavy tax burden than the richer section. So to minimize the tax burden & for more transparency GST is a better way. GST is a single tax system which unified our tax structure &give ...