2019 · Q41
Which one of the following canons of taxation was not advocated by Adam Smith?
General KnowledgeIndian Economy
- ACanon of equality
- BCanon of certainty
- CCanon of convenience
- DCanon of fiscal adequacy
Explanation
Adam Smith, in The Wealth of Nations (1776), laid down four canons of taxation: equality, certainty, convenience and economy. The canon of fiscal adequacy - that taxation should yield sufficient revenue for the state's needs - was added by later economists and was not one of Smith's original canons. Hence option D is correct.