equity in taxation

Equity in taxation refers to the principle that taxes should be fair and just. It involves two main concepts: horizontal equity, where individuals with similar abilities to pay should owe similar amounts in taxes; and vertical equity, where those with greater financial capacity contribute a larger share. This ensures that the tax system does not disproportionately burden lower-income individuals while providing a fair contribution structure for wealthier citizens. Ultimately, equity in taxation seeks to promote social justice and economic balance in society.