Advertisements
Advertisements
प्रश्न
Citing reason state the advantage of a direct tax over an indirect tax.
Mention three merits of direct taxes over indirect taxes.
Citing reasons state the superiority of A direct tax over an indirect tax.
Advertisements
उत्तर
- Direct taxes cost less to collect than indirect taxes.
- Direct taxes are often progressive, which means they can more effectively reduce income and wealth inequities. Whereas, indirect taxes have a regressive pattern.
- Like indirect taxes, direct taxes are unlikely to cause product price increases.
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 role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
State the difference between income tax and expenditure tax.
An indirect tax is not always equitable. Give two reasons to support your answer.
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Draw a neat labelled diagram for progressive taxation.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain the term Incidence of a tax.
Explain the significance of taxes.
Explain how indirect taxes can be made progressive.
