ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
BIG QUESTION -
Can the government of a
country really influence the
consumer/producer behaviour
and influence the AD and AS?
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ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
Starter: Brainstorming session on
the meaning of the terms;
● TAX BURDEN
● TAX EVASION
● TAX AVOIDANCE
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ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
Tax Burden: The proportion of tax
taken from an individual or a firm OR
on National Income
Tax Evasion: Tax evasion is the illegal evasion
of taxes by individuals, corporations, and trusts.
Tax evasion often entails taxpayers deliberately
misrepresenting the true state of their affairs to the
tax authorities
Tax Avoidance: Avoiding taxes legally - Taxes on
cars can be avoided by not owning a car/MNCs
Moving wealth to other countries
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ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
Qualities of a good tax:
1. Equity - fairness/taxing according to
their ability
2. Non-distortionary - Should not affect an
economic behaviour
3. Certainty - Clarity on how much and
when to pay
4. Convenience - Easy to pay
5. Simplicity - Easy to understand
6. Administrative Efficiency - cheap & Easy
to collect
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ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
Case Analysis (Textbook Activity - 4.7 (Page No: 292)
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ROLE OF GOVERNMENT - PRINCIPLES OF
TAXATION
Case Analysis (Textbook Activity - 4.7 (Page No: 292)
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ASSESSMENT
EDpuzzle Assignment
Check the assignment posted in the Google Classroom
and try the While-watching activity!
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Home Assignment
Evaluate GST in India on the
grounds of principles of taxes
(In a organiser)
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THANK YOU………...
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