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प्रश्न
An indirect tax is not always equitable. Give two reasons to support your answer.
थोडक्यात उत्तर
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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.
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संबंधित प्रश्न
Fiscal policy means public expenditure and tax policy of the government.
Which of these taxes is most likely to be progressive?
Which of the following taxes generate civic consciousness among people?
Define Indirect tax
Differentiate between direct and indirect taxes.
State the difference between income tax and expenditure tax.
Briefly explain why direct taxes foster civic consciousness among people.
Explain the following with examples:
Progressive tax
Explain the significance of taxes.
Give two examples of direct taxes.
