Taxation Principles

Taxation principles refer to the core ideas that guide how taxes are designed and implemented. Key principles include equity (fairness in the tax burden), efficiency (minimizing economic distortions), simplicity (ease of understanding and compliance), and transparency (clear rules and purposes). Taxes should be based on the taxpayer's ability to pay, promoting social equity. They should not overly impede economic activities. Effective taxation balances raising revenue for public services while being fair and straightforward for citizens to understand and comply with. These principles aim to create a fair, efficient, and functional tax system for society.