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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
The government imposes tax ______.
The major objective of monetary policy is ______.
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 |
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
State the difference between income tax and expenditure tax.
An indirect tax is not always equitable. Give two reasons to support your answer.
What is meant by shifting of tax burden?
State two drawbacks of direct taxes.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Citing reasons state the superiority of Progressive tax over regressive tax.
