Advertisements
Advertisements
प्रश्न
An indirect tax is not always equitable. Give two reasons to support your answer.
Advertisements
उत्तर
An indirect tax is often considered not always equitable for the following two reasons:
- Burden on low-income groups: Indirect taxes, such as sales tax or VAT, apply to all individuals, regardless of income level. This means that low-income people pay the same tax rate as high-income people for products and services. As a result, a more significant proportion of their income is used to pay these taxes, increasing their tax burden.
- Indirect taxes do not account for the taxpayer's ability to pay. Since everyone pays the same rate, these taxes make no difference between those who can afford to pay more and those who cannot.
APPEARS IN
संबंधित प्रश्न
______ are those taxes which are paid by the same person on whom they have been imposed.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Which of the statement is true for income tax?
State the difference between income tax and expenditure 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:
Sales tax
What are progressive taxes.
Give one example of progressive tax.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Differentiate between progressive and regressive taxes giving an example for each.
