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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?
संक्षेप में उत्तर
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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.
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Role of State in Economic Development
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 6: The State and Economic Development - QUESTIONS [पृष्ठ १८४]
संबंधित प्रश्न
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
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 |
State two objectives of fiscal policy.
Define direct tax
State the difference between income tax and expenditure tax.
Citing reason state the advantage of a progressive tax over proportional tax.
What is meant by regressive taxation?
Give one example of progressive tax.
State three demerits of an Indirect tax.
Explain how indirect taxes can be made progressive.
