Question
Each question given below consists of a statement, followed by three or four arguments numbered I, II, III and IV. You have to decide which of the arguments is/are 'strong' arguments) and which is/are 'weak' arguments) and accordingly choose your answer from the alternatives given below each question.
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.
Answer: Option E
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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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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