Question

Identify the canon followed in the progressive system of taxation.

• A. Canon of certainty
• B. Canon of convenience
• C. Canon of equity
• D. Canon of economy

Answer 1

The correct option is C Canon of equity

The progressive system of taxation emphasises on the fact that high-income earners pay more tax than low-income earners. The rate of tax increases as the income increases. This is in line with the canon of equity. Through this, the rich are able to contribute to the revenue of the government.