(1) The ‘Ability-to-Pay’ principleof Taxation is one of thecanons of taxation proposedby Adam Smith in his ‘Wealthof Nations.’It is a progressivetaxation principle that maintainsthat taxes should be leviedaccording a taxpayer's abilityto pay. It is concerned withthe equitable distribution oftaxes according to the statedtaxable capacity or ability topay of an individual or group.The emphasis in this approachis put on redistribution of income.