Directions : 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.

Statement : Should all the indirect taxes in India be combined into a single tax on all commodities?

Arguments :
I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
II. Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection.
III. No. No other country has adopted such system.

A. None is strong

B. Only I and III are strong

C. Only II is strong

D. Only II and III are strong

E. None of these

Answer: Option E

Solution(By Examveda Team)

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.