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प्रश्न
To which tax is this shifting of tax burden relevant?
संक्षेप में उत्तर
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उत्तर
- The shifting of the tax burden is generally applicable to indirect taxes such as sales tax, goods and services tax (GST), excise duty, and customs duty.
- In many cases, the tax is originally placed on a seller or producer, but the burden is ultimately passed on to the end consumer through higher pricing.
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Role of State in Economic Development
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संबंधित प्रश्न
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Instruments of fiscal 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 |
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 |
Define direct tax
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
An indirect tax is not always equitable. Give two reasons to support your answer.
Explain how indirect taxes can be inflationary.
Draw a neat labelled diagram for progressive taxation.
Explain briefly two merits of indirect tax.
