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प्रश्न
Differentiate between progressive and regressive taxes giving an example for each.
फरक स्पष्ट करा
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उत्तर
| S. No. | Progressive tax | Regressive tax |
| 1. | Under progressive taxation, the rate of tax increases as tax payer's income increases. | A regressive tax is one in which the rate of tax decreases as the tax payer’s income increases. |
| 2. | It has more financial impact on higher income individuals. | Regressive taxes have a greater impact on lower income individuals. |
| 3. | It is based on the principle of ability to pay. | It is not based on the principle of ability to pay. |
| 4. | Example - Income tax. | Example - Sales tax. |
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Role of State in Economic Development
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 6: The State and Economic Development - QUESTIONS [पृष्ठ १६८]
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संबंधित प्रश्न
______ are those taxes which are paid by the same person on whom they have been imposed.
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 |
Define fiscal policy.
Define direct tax
An indirect tax is not always equitable. Give two reasons to support your answer.
State two drawbacks of direct taxes.
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Explain the following with examples:
Progressive tax
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
