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प्रश्न
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
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उत्तर
The statement that "an indirect tax can be made progressive by imposing higher tax rates on luxuries" can be justified as follows:
- Indirect taxes, such as sales tax or VAT, are commonly regarded as regressive because they apply the same rate to all individuals, regardless of income.
- However, this system can be made more progressive by imposing greater taxes on luxury products and services primarily consumed by the wealthy.
- By raising tax rates on luxuries such as luxury automobiles, jewellery, designer clothes, and high-end equipment, the tax burden is more concentrated among individuals with higher incomes who can afford them.
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संबंधित प्रश्न
______ is an example of commercial revenues.
The government imposes tax ______.
Instruments of fiscal policy is:
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Differentiate between direct and indirect taxes.
To which tax is this shifting of tax burden relevant?
Give one example of progressive tax.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain the term Impact of a tax.
Explain how indirect taxes can be made progressive.
