1) Equity/Fairness
People should pay taxes according to their ability to pay them. Those in the same
Income bracket should pay similar taxes , and bring fairness and equity both
Horizontally and vertically in terms of those with higher incomes being called upon to
Pay higher taxes.
2) Certainty of taxes.
Avoid arbitrariness so that quantum and circumstances are certain and clear to both the
Taxpayer and tax collector who help avoid unnecessary and costly disputes.
3) Convenience of payment
Where method , manner and payment of taxes should be convenient to the taxpayer to
Encourage him to produce more.
4) Tax Administration Cost
The cost of administering a tax should be low for both the taxpayer and the tax
Collector so that tax yields should be lower than that used in collecting it.