We can understand taxation principles as the set of guidelines or instructions that assist lawmakers and purveying bodies to formulate stratagems and plan their execution to devise a robust tax structure. The objective of taxation principles is to increase revenues and usher in socio-economic equality among citizens. The three principles are-Distribution of Tax Burdens – It entails formulating a taxation plan that works for uplifting the poor and underprivileged sections of society. Economic Efficiency – In an ideal scenario, the economic efficiency principle implies that the taxation system of an economy should not interfere with the consumption, production, and supply chain cycles.Ease of Administration and Compliance – The taxation regulating body should ensure that the taxation system should be lucid, unambiguous, cost-effective and convenient.The importance of the taxation principles is that they help revive the economy and increase revenue generation.