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
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 |
The major objective of monetary policy is ______.
Name any two instruments of Fiscal Policy.
Distinguish between fiscal policy and monetary policy.
Differentiate between direct and indirect taxes.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Classify the following types of tax into direct and indirect taxes:
- Entertainment tax
- Income tax
- House tax
- Sales tax
Classify the following type of tax into direct and indirect taxes:
House tax
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
Explain the significance of taxes.
