BASIC CONCEPTS OF TAXATION (CHAPTER 01)

Question 1

Explain revenue objectives of taxation?

Answer 1

1- to collect revenue to run and administrate government
2- to implement its policies
3- for fair distribution of wealth

Question 2

Explain non-revenue objectives of taxation?

Question 3

Basics of tax laws/ canons of taxation?

Answer 3

1-Equality
Tax must be based upon ability of the tax payer
2-Certainity
Tax must be clear and certain to tax payer
3-Convenience of payment
Tax must be collected in a convenient way and
convenient time
4-Economy of Collection
Tax should not be expensive to collect

Question 4

Kinds of Taxes/Structures of taxes?

Answer 4

1-Proportionl tax / Flat tax
2-Progressive tax
3- Regressive tax

Question 5

Principles for levy of Tax?

Answer 5

1-The Benefit-Principle
2-The Ability-to-Pay Principle
3-The Equal Distribution Principle

Question 6

Explain Tax as a mean for Development?

Question 7

Characteristics of Tax Laws?

Answer 7

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Question 8

Principles of a Sound Tax System? (CAFE)

Answer 8

1-Consistency/Compatibility with Economic Goals
2-Administrative Feasibility
3-Fiscal Adequacy
4-Equality or Theoretical justice

Question 9

Types of Taxes in Pakistan?

Answer 9

1- Direct Taxes
2- Indirect Taxes

Question 10

Explain Direct Taxes?

Answer 10

1-Income Tax

2-Capital Value Tax

Question 11

Explain In-direct Taxes?

Answer 11

1-Sales Tax

2-Customs Duty

3-Federal Excise Duty