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Read the given question and decide which of the following argument is/are strong.
Should all indirect taxes in India be combined into a single tax on all commodities?
Arguments:
1. Yes, this will considerably simplify the tax collection mechanism and the cost of collection of taxes will also reduce.
2. No, no other country has adopted such system.
  • a)
    Only argument 1 is strong.
  • b)
    Both argument 1 and 2 are strong
  • c)
    Neither argument 1 nor 2 is strong
  • d)
    Only argument 2 is strong
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Read the given question and decide which of the following argument is/...
Only 1st argument is strong as it provides very convincing information in favour of a single tax system for commodities. The 2nd argument does not hold strong as it does not provide enough information. No other country adopting this system of taxation does not mean that it is not a profitable venture.
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Read the given question and decide which of the following argument is/are strong.Should all indirect taxes in India be combined into a single tax on all commodities?Arguments:1. Yes, this will considerably simplify the tax collection mechanism and the cost of collection of taxes will also reduce.2. No, no other country has adopted such system.a)Only argument 1 is strong.b)Both argument 1 and 2 are strongc)Neither argument 1 nor 2 is strongd)Only argument 2 is strongCorrect answer is option 'A'. Can you explain this answer?
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