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
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.
The major objective of monetary policy is ______.
Which of the following taxes generate civic consciousness among people?
Define direct tax
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Classify the following type of tax into direct and indirect taxes:
House tax
Three demerits of an Indirect tax.
Explain how indirect taxes can be made progressive.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
