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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
The government imposes tax ______.
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 |
Wealth tax is an example of:
Which of the statement is true for income tax?
State the difference between income tax and expenditure tax.
What is meant by shifting of tax burden?
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain the following with examples:
Progressive tax
Give two examples of direct taxes.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
