GCE Economics 1989 Theory question 110

Principles (canons) of taxation:
1. Equity: tax according to ability to pay.
2. Certainty: the amount, time and method of payment should be clear.
3. Convenience: collected at a time and in a way convenient to the taxpayer.
4. Economy: cost of collection should be small compared with yield.
5. Flexibility, simplicity and productivity (it should yield adequate revenue).
Reasons why Nigerians are taxed:
1. To raise revenue for government expenditure.
2. To redistribute income and reduce inequality.
3. To control inflation (reduce spending).
4. To discourage consumption of harmful goods.
5. To protect local industries (import duties).
6. To correct balance of payments deficits.
7. To encourage civic responsibility.

Two parts: canons, then reasons.