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ExamsIBPS POGeneral Awareness

Statement: Should all indirect taxes in India be combined into a single tax? I. Yes — simplifies tax collection, reduces cost. II. Yes — benefits manufacturers/traders, boosts collection. III. No — no other country has adopted such system. Which arguments are strong?

  1. None of these
  2. Only I and III are strong
  3. Only II is strong
  4. Only II and III are strong

Correct answer: None of these

Solution

I (simplification + cost reduction) is a strong, direct argument. II (benefiting manufacturers) is somewhat indirect and speculative. III (no other country) is a weak comparative argument. Since only 'I and II are strong' or 'Only I is strong' fits, but neither is listed, answer = None of these.

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