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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.
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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.
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संबंधित प्रश्न
The essential feature of a tax.
Wealth tax is an example of:
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
State two objectives of fiscal policy.
Distinguish between fiscal policy and monetary policy.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
What is meant by shifting of tax burden?
Classify the following type of tax into direct and indirect taxes:
Income tax
What is meant by regressive taxation?
Explain the state's role in achieving the objective of social justice in less developed countries.
