The levying of licensing fees for automobiles is an example of taxation based on the ability-to-pay principle.

Question

Quizplus · Accepted Answer

The levying of licensing fees for automobiles is more closely related to the benefits-received principle of taxation, where the fee is paid by those who use the service (in this case, the roads or the right to drive), rather than being based on the taxpayer's income or ability to pay.

The Levying of Licensing Fees for Automobiles Is an Example