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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
Which of the following is an advantage of direct taxes?
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
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 |
State two objectives of fiscal policy.
Differentiate between direct and indirect taxes.
What is meant by shifting of tax burden?
Classify the following type of tax into direct and indirect taxes:
Income tax
Explain clearly tour ways by which the state can promote economic growth and development.
Explain the significance of taxes.
Explain the state's role in achieving the objective of social justice in less developed countries.
