Advertisements
Advertisements
प्रश्न
Explain how indirect taxes can be inflationary.
Explain how indirect taxes prove to be inflationary.
संक्षेप में उत्तर
Advertisements
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.
shaalaa.com
Role of State in Economic Development
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
______ are those taxes which are paid by the same person on whom they have been imposed.
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Fiscal policy means public expenditure and tax policy of the government.
Distinguish between fiscal policy and monetary policy.
An indirect tax is not always equitable. Give two reasons to support your answer.
Classify the following types of tax into direct and indirect taxes:
- Entertainment tax
- Income tax
- House tax
- Sales tax
What are progressive taxes.
Give two reasons why the government imposes tax?
Discuss four fiscal policy objectives with reference to India.
Define the following term:
Fiscal deficit
