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प्रश्न
Explain briefly two merits of indirect tax.
थोडक्यात उत्तर
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उत्तर
Merits of indirect tax are as follows:
- Indirect taxes are convenient to pay because they are paid in small amounts and are included in the price of the commodity. Taxpayers do not feel the burden of these taxes.
- Indirect taxes can be used to increase social welfare. The consumption of goods which are undesirable and harmful such as wine, cigarettes, etc. can be discouraged by imposing heavy taxes on them.
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Role of State in Economic Development
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संबंधित प्रश्न
Monetary policy means regulation of money supply by the monetary authority.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Define fiscal policy.
Distinguish between fiscal policy and monetary policy.
Classify the following type of tax into direct and indirect taxes:
House tax
Give an example of Indirect tax.
Give one example of progressive tax.
State two drawbacks of direct taxes.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
