Murthy, K.S.V.L. Narasimha
Fringe benefit tax - 2006 - p.14-18. - Jan
The justification given for introducing FBT is both on grounds of equity and economic efficiency. When these fringe benefits are under-taxed, it violates both horizontal and vertical equity. The violation of horizontal equity occurs when a tax-payer receives his entire income in cash and thus bears a higher tax burden in comparison to another tax-payer who receives his income partly in cash and partly in kind. And the violation of vertical equity occurs since these fringe benefits are generally provided only to the senior executives in the organization. - Reproduced.
Fringe benefit tax
Taxation
Fringe benefit tax - 2006 - p.14-18. - Jan
The justification given for introducing FBT is both on grounds of equity and economic efficiency. When these fringe benefits are under-taxed, it violates both horizontal and vertical equity. The violation of horizontal equity occurs when a tax-payer receives his entire income in cash and thus bears a higher tax burden in comparison to another tax-payer who receives his income partly in cash and partly in kind. And the violation of vertical equity occurs since these fringe benefits are generally provided only to the senior executives in the organization. - Reproduced.
Fringe benefit tax
Taxation