Advertisements
Advertisements
प्रश्न
An indirect tax is not always equitable. Give two reasons to support your answer.
थोडक्यात उत्तर
Advertisements
उत्तर
An indirect tax is often considered not always equitable for the following two reasons:
- Burden on low-income groups: Indirect taxes, such as sales tax or VAT, apply to all individuals, regardless of income level. This means that low-income people pay the same tax rate as high-income people for products and services. As a result, a more significant proportion of their income is used to pay these taxes, increasing their tax burden.
- Indirect taxes do not account for the taxpayer's ability to pay. Since everyone pays the same rate, these taxes make no difference between those who can afford to pay more and those who cannot.
shaalaa.com
Role of State in Economic Development
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
APPEARS IN
संबंधित प्रश्न
The government imposes tax ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Which of the statement is true for income tax?
Define direct tax
Briefly explain why direct taxes foster civic consciousness among people.
What are progressive taxes.
Give one example of progressive tax.
Explain the term Impact of a tax.
Give two examples of direct taxes.
Define the following term:
Fiscal deficit
