<u>Directions :</u> Following question consists of a statement followed by three arguments I, II and III . You have to decide which of the arguments is a STRONG arguments and which is a WEAK Argument.<br><br><u>Statement :</u> Should all the indirect taxes in India be combined into a single tax on all commodities?<br><br><u>Arguments :</u><br> I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.<br>II. Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection.<br>III. No. No other country has adopted such system.

Correct Answer: None of these
Only I and II are strong. Clearly, both I and II hold strong, as they provide very convincing reasons, for a single tax system would help get rid of multifarious taxes on a product. Besides, the idea of imitation of other countries in the implementation of a certain policy holds no relevance. So, argument III does not hold strong.