Name and briefly explain four major principles of a good tax system

(i) Economical:

• Low cost of collection to the tax body
  Low compliance costs by the taxpayer.

(ii) Equity:

Horizontal equity: People with the same economic position should pay equal amount of tax.
Vertical equity: Consideration is taken as to whether tax payable should be proportional to income i.e progressive or regressive.

(iii) Certainty:

Clear to taxpayer what his liability actually is and how it arises To the tax body it is guaranteed of the amount of revenue its going to collect