Statement: Should all the indirect taxes in India be combined into a single tax on all commodities?
Arguments:
I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
II. Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection.
III. No. No other country has adopted such system.

None is strong

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Only I and III are strong

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Only II is strong

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Only II and III are strong

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None of these

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Solution

The correct option is D None of these
should all the indirect taxes in India be combined into a single tax on all commodities?
Single tax system will reduce problem pertaining with many tax and difference between tax system of each states when moving across borders of states.
This will largely benefit traders and manufacturers working across states.
Only i and II are strong and III is vague.
There is no kind of answer where I and II are strong.
Hence, Option E is correct.

Suggest Corrections

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