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प्रश्न
Citing reason state the advantage of a progressive tax over proportional tax.
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उत्तर
- Progressive tax systems are created to charge a higher tax rate on persons or businesses with higher incomes, providing a benefit of equity and fairness.
- Proportional tax affects low-income earners and high income earners equally. But a progressive tax has more financial impact on high income earners than on low income earners. That is why a progressive tax is considered better and more fair.
- Example: In a progressive system, a person earning ₹ 100,000 per year may pay 25% in taxes, while someone earning ₹ 30,000 may pay only 10%. A proportionate tax system would require both to pay the same percentage, say 15%, with the lower-income person bearing most of the cost.
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संबंधित प्रश्न
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Classify the following type of tax into direct and indirect taxes:
Income tax
Briefly explain why direct taxes foster civic consciousness among people.
What are progressive taxes.
Which one is better progressive or regressive taxation and why?
Explain the following with examples:
Progressive tax
Explain briefly two merits of indirect tax.
