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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
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?
Define direct tax
Classify the following type of tax into direct and indirect taxes:
Sales tax
Give two reasons why the government imposes tax?
Draw a neat labelled diagram for progressive taxation.
State two differences between income tax and commodity tax.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Explain the term Incidence of a tax.
Explain how indirect taxes can be made progressive.
