Canon of productivity implies 

a tax should be flexible or elastic in yield that the revenue yield from any tax must be substantial 

The tax structure should be diverse in nature rather than having a single or two taxes. 

Taxpayer should understand and be able to calculate it without the help of tax consultants

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The canon of productivity in taxation suggests several principles for designing effective tax systems Lets break down each point 1 Flexibility in Yield This implies that a tax should be able to generate significant revenue for the government but it should also be flexible or elastic in its yield This means that the revenue generated should not be overly reliant on a specific economic factor or condition For example a tax that heavily depends on a single industry or economic activity might suffer if that industry experiences a downturn By having a tax system ... View the full answer