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प्रश्न
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
How are taxes used to regulate consumption and production?
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उत्तर
- Taxation policy regulates consumption and production in a country. Taxes are sometimes used to discourage the consumption and production of harmful commodities such as wine, cigarettes, etc.
- They are also effective in diverting the resources from production of non-essential commodities to essential goods.
- It can be done through differential commodity taxation by imposing heavy taxes on production of non-essential goods.
संबंधित प्रश्न
Which of the following is an advantage of direct taxes?
Fiscal policy means public expenditure and tax policy of the government.
Instruments of fiscal policy is:
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 : ______.
Identify the tax which is most likely to faster civic conciousness.
Define Indirect tax
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Citing reason state the advantage of a progressive tax over proportional tax.
Classify the following type of tax into direct and indirect taxes:
Income tax
State two differences between income tax and commodity tax.
