Advertisements
Advertisements
प्रश्न
Explain briefly two merits of indirect tax.
Advertisements
उत्तर
Merits of indirect tax are as follows:
- Indirect taxes are convenient to pay because they are paid in small amounts and are included in the price of the commodity. Taxpayers do not feel the burden of these taxes.
- Indirect taxes can be used to increase social welfare. The consumption of goods which are undesirable and harmful such as wine, cigarettes, etc. can be discouraged by imposing heavy taxes on them.
APPEARS IN
संबंधित प्रश्न
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The state can promote economic development by ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
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 |
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Distinguish between fiscal policy and monetary policy.
Classify the following type of tax into direct and indirect taxes:
Sales tax
Give one example of progressive tax.
Give two reasons why the government imposes tax?
Explain the following with examples:
Progressive tax
