Equity: Taxation should be fair and just, ensuring that individuals and businesses contribute to the government’s revenue based on their ability to pay. This principle can be achieved through progressive taxation, where higher-income individuals pay a higher percentage of their income in taxes.

Simplicity: Tax systems should be easy to understand and comply with. Complex tax laws and regulations can lead to confusion and errors, increasing the administrative burden on taxpayers and the government.

Efficiency: Taxes should be designed to minimize economic distortions and inefficiencies. This means avoiding excessive tax rates that discourage work, investment, and economic growth. It also involves minimizing the costs of tax collection and administration.

Certainty: Tax laws and regulations should be stable and predictable, providing taxpayers with a clear understanding of their tax obligations. Frequent changes to tax laws can create uncertainty and make it difficult for individuals and businesses to plan and make informed decisions.

Neutrality: Taxation should not favor or discriminate against specific individuals, industries, or activities. A neutral tax system treats all taxpayers equally, ensuring that tax burdens are based on economic factors rather than personal characteristics or preferences.

Adequacy: Taxation should generate sufficient revenue to fund government expenditures and public services. Tax policies should be designed to ensure that tax revenues are adequate to meet the government’s spending needs without excessive borrowing or deficits.

Administrative feasibility: Tax systems should be practical and feasible to administer. This involves designing tax laws and regulations that are easy to enforce and comply with, minimizing the administrative burden on both taxpayers and tax authorities.

Transparency: Taxation should be transparent, with taxpayers having a clear understanding of how their tax dollars are being used by the government. This includes providing taxpayers with information on tax rates, deductions, and exemptions, as well as the allocation of tax revenues to different government programs and services.