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प्रश्न
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
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उत्तर
The statement that "an indirect tax can be made progressive by imposing higher tax rates on luxuries" can be justified as follows:
- Indirect taxes, such as sales tax or VAT, are commonly regarded as regressive because they apply the same rate to all individuals, regardless of income.
- However, this system can be made more progressive by imposing greater taxes on luxury products and services primarily consumed by the wealthy.
- By raising tax rates on luxuries such as luxury automobiles, jewellery, designer clothes, and high-end equipment, the tax burden is more concentrated among individuals with higher incomes who can afford them.
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संबंधित प्रश्न
______ is an example of commercial revenues.
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The state can promote economic development by ______.
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Classify the following type of tax into direct and indirect taxes:
House tax
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Which one is better progressive or regressive taxation and why?
State two differences between income tax and commodity tax.
Three demerits of an Indirect tax.
Explain how indirect taxes can be made progressive.
