Tax is an effective fiscal tool to influence the economy. It has also certain norms which have to be followed to make it more effective and popular. That state is a welfare state which imposes less amount of tax and collects more amount of revenue. So the tax should be effective. A good tax system should help to establish fair income distribution and socio-economic stability. According to Adam Smith, "A tax is a contribution from citizens for the support of the state." Adam Smith has given the most comprehensive and exhaustive concept of a good tax system which is known as the canon of taxation. 1 Canon of equity A good tax should be based on the ability to pay principle of taxation, and it has to assure social justice to all taxpayers. In general, in this canon of equity, everybody must be treated equally for tax or according to capacity or ability they should pay the tax and unequal must be treated unequally....
If there is a will there is the way...