Kautilya alias Vishnu Gupta (who is
famously known as Chanakya) was an Indian politician, strategist and writer. He is well known for his text "ARTHASHASTRA". He
lived during 350 BC-275 BC.
Adam Smith, Father of Economics, is well known for his famous book "The Wealth of Nations". He lived during 1723
AD–1790 AD.
What's common between the Both or Why I am mentioning about both of them here now? Kindly read both Kautilya's Principle of Taxation and
Adam Smith's Cannons of Taxation that are as follows:
KAUTILYA'S Principles of Taxation:
1. Taxation should be
Such that it may not be felt by the Poor.
2. In raising taxes
higher, it should be done little by little when the realms prosperity is
increasing. It should be Mild.
3. Taxes should be
levied on Proper Places at proper time in a proper form.
4. It should be
reasonable and equitable.
ADAM SMITHS Cannons of Taxation:
1.Cannon
of Equality :- Ability to pay principle.
2.Cannon
of Certainity:- The amount of tax should be Paid.
3.Cannon
of Convenience:- Less burdensome to tax payer.
4.Cannon of Economy:- tax should be
collected to minimum Possible Level.This is just a small comparison between Kautilya's Principles of taxation and Adam Smiths cannon of taxation. I am leaving this post open to you.
