Advertisements
Advertisements
प्रश्न
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
The government imposes tax ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
Identify the tax which is most likely to faster civic conciousness.
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
State two objectives of fiscal policy.
What is meant by shifting of tax burden?
What is meant by regressive taxation?
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Define the following term:
Fiscal deficit
