Discussion :: Statement and Argument
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Statement: Should all the indirect taxes in India be combined into a single tax on all commodities?
Arguments:
- Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
- Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection.
- No. No other country has adopted such system.
A.
None is strong
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B.
Only I and III are strong
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C.
Only II is strong
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D.
Only II and III are strong
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E.
None of these
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Answer : Option E
Explanation :
Only I and II are strong. Clearly, both I and II hold strong, as they provide very convincing reasons, for a single tax system would help get rid of multifarious taxes on a product. Besides, the idea of imitation of other countries in the implementation of a certain policy holds no relevance. So, argument III does not hold strong.
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