Q. Who among the following has given the merit principle of taxation?
Answer: Adam Smith
Notes: The 'capability-to-pay' principle of taxation is one of the principles of taxation given by Adam Smith in his 'Wealth of Nations'. It is a progressive taxation principle which states that tax should be levied according to the ability of the taxpayer to pay. It is concerned with the equitable distribution of taxes according to the taxable capacity or ability to pay of an individual or group.