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प्रश्न
What is meant by shifting of tax burden?
Explain the term Shifting of a tax.
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उत्तर
Shifting of the tax burden is the process by which the person or business legally responsible for paying a tax transfers that burden to another party. This happens when the taxpayer's tax responsibility is passed to someone else, usually through changes in prices or costs.
संबंधित प्रश्न
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 |
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
Name any two instruments of Fiscal Policy.
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Citing reason state the advantage of a progressive tax over proportional tax.
Explain how indirect taxes can be inflationary.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain the term Incidence of a tax.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
