Direction: In making decisions about important question, it is desirable to distinguish between a 'strong'argument and a 'weak' argument. A ' strong' argument must be both important and directly related to the question. A 'weak' argument may not be directly related to the question and may be of minor importance or may be related to the trivial aspect of the question. Each question below is followed by three arguments numbered I and II and III. You have to decide which of the argument is 'strong' and which is 'weak'.
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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 collection tax will also reduce.
II. Yes, the manufactures and traders will be benefited by this which in turn will be boost tax collections.
III. No, no other country has adopted such system.
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- None is strong
- I and III are strong
- Only II is strong
- II and III are strong
- None of thses
Correct Option: E
Argument I and II are strong because a single tax will simplify the tax collection mechanism and manufactures and traders will be benefited by it. What other countries are doing, we should not adopt that blindly. So, Argument III is not strong.