Mentor’s Comments-
- Introduction- Write about the meaning of taxation and who is the authority for taxation.
- Body – the main role of taxation, i.e. generating state revenue. discuss on how taxation is important for economic and political development.
- Conclude the answer with importance of taxation for an overall growth of a state.
Razorpay: I8GfoK9Ze5ifgl
Nandhini,
Nice attempt. Introduction is fine, however you can mention both direct tax and indirect tax here to make the answer more technical.
In significance, you have clubbed all parts of the question- separate points can be written about economic and political development. In political development you can mention role of taxation in national building, implementing social sector schemes for vulnerable populations (some examples), role in generating employment etc
Other points mentioned by you are good.
Issues and way forward are fine. In way forward, concept of Laffer curve to keep the tax rates optimum can be mentioned.
Conclusion is good.
Keep writing. 🙂
@staff
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Muskan,
Introduction is fine, direct tax and indirect tax can also be mentioned here to make it more technical. Points mentioned under importance are also good, also role of taxation in reducing inequality, maintaining economic stability, creating employment, protecting environment via carbon tax can also be mentioned. This part is the crux of the answer, so try to cover as many dimensions as possible.
Issues mentioned are fine, excessive taxation can also be mentioned (re-petrol/diesel etc causing inflation).
A brief way forward suggesting to keep the tax rates optimum (Laffer curve concept), increasing tax base, formalizing the economy etc can be written.
Conclusion is fine.
Keep writing. 🙂