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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
Instrument of monetary policy is:
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
The state can promote economic development by ______.
Define fiscal policy.
Name any two instruments of Fiscal Policy.
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
State two objectives of fiscal policy.
State two drawbacks of direct taxes.
Give two examples of direct taxes.
Explain how indirect taxes can be made progressive.
