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प्रश्न
Explain how indirect taxes can be inflationary.
Explain how indirect taxes prove to be inflationary.
संक्षेप में उत्तर
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उत्तर
- Indirect taxes are known to cause significant inflation. Indirect taxes on commodities lead to higher market prices.
- Rising prices increase the cost of living, leading trade unions to seek greater salaries to maintain workers' real incomes.
- Indirect taxes perpetuate a cycle of rising prices, costs, wages, and further price increases.
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Role of State in Economic Development
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
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 |
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
Define direct tax
Differentiate between direct and indirect taxes.
Classify the following type of tax into direct and indirect taxes:
House tax
Explain clearly tour ways by which the state can promote economic growth and development.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Differentiate between progressive and regressive taxes giving an example for each.
Explain briefly two merits of indirect tax.
