Advertisements
Advertisements
प्रश्न
Differentiate between progressive and regressive taxes giving an example for each.
Advertisements
उत्तर
| S. No. | Progressive tax | Regressive tax |
| 1. | Under progressive taxation, the rate of tax increases as tax payer's income increases. | A regressive tax is one in which the rate of tax decreases as the tax payer’s income increases. |
| 2. | It has more financial impact on higher income individuals. | Regressive taxes have a greater impact on lower income individuals. |
| 3. | It is based on the principle of ability to pay. | It is not based on the principle of ability to pay. |
| 4. | Example - Income tax. | Example - Sales tax. |
APPEARS IN
संबंधित प्रश्न
Under ______ the rate of tax increases with rise in tax payer's income.
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 ______.
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Distinguish between fiscal policy and monetary policy.
Citing reason state the advantage of a progressive tax over proportional tax.
Classify the following type of tax into direct and indirect taxes:
Income tax
What is meant by regressive taxation?
Give two reasons why the government imposes tax?
Explain clearly tour ways by which the state can promote economic growth and development.
Explain the term Impact of a tax.
