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Tax Efficiency:- Tax efficiency has three aspects. The first involves the administration and compliance costs of taxes. Tax efficiency is concerned with the convenience and certainty of a tax to the taxpayer, and with the cost of collection and compliance to the taxing unit. An efficient tax system would not impose excess cost to the taxpayer in the payment of the tax and would be collected and enforced at the lowest possible costs. Administrative …

…individual demands. If charges for services are a fixed amount (such as monthly fee for garbage collection) or are graduated in a decreasing marginal rate schedule (such as utilities services), the principle of vertical equity may be violated and charges will be distributed in a regressive way, Nevertheless, charges are an efficient way to distribute costs of government services and may also be an equitable way if the distribution of income is not seriously disturbed. 17