00936pab a2200157 454500008004000000100003100040245002300071260000900094300001300103362000800116520057800124650002300702650001300725700001400738773002600752180718b2006   xxu||||| |||| 00| 0 eng d  aMurthy, K.S.V.L. Narasimha  aFringe benefit tax  c2006  ap.14-18.  aJan  aThe 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.  aFringe benefit tax  aTaxation  aGowri, K.  aManagement Accountant