Each question given below consists of a statement, followed by three or four arguments numbered I, II, III and IV. You have to decide which of the arguments is/are ‘strong’ argument(s) and which is/are ‘weak’ argument(s) and accordingly choose your answer from the alternatives given below each question.

Statements: Should all the indirect taxes in India be combined into a single tax on all commodities?
Arguments:
I. Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce.
II. Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection.
III. No. No other country has adopted such system.

The correct option is None of these (as Arguments I and II are strong arguments).

Let us analyze each of the given arguments step-by-step to determine their strength:

Argument I: "Yes. This will considerably simplify the tax collection mechanism and the cost of collecting tax will also reduce."
This argument is strong because combining multiple indirect taxes into a single unified tax (like GST) streamlines the administrative framework, reduces compliance burden, and lowers overall collection costs, which is a desirable economic outcome.

Argument II: "Yes. The manufacturers and traders will be benefited by this which in turn will boost tax collection."
This argument is also strong because simplifying the tax structure removes cascading tax effects, makes business transactions smoother for manufacturers and traders, promotes economic compliance, and leads to an increase in net tax revenue for the nation.

Argument III: "No. No other country has adopted such system."
This argument is weak because merely comparing with other countries or arguing that a system has not been adopted elsewhere is not a valid reason to reject a policy innovation suited to a country's specific needs.

Since both Arguments I and II are strong, but the combination "Only I and II are strong" is not listed among the options (A, B, C, D), the correct choice is None of these.