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प्रश्न
Explain how indirect taxes can be inflationary.
Explain how indirect taxes prove to be inflationary.
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उत्तर
- Indirect taxes are known to cause significant inflation. Indirect taxes on commodities lead to higher market prices.
- Rising prices increase the cost of living, leading trade unions to seek greater salaries to maintain workers' real incomes.
- Indirect taxes perpetuate a cycle of rising prices, costs, wages, and further price increases.
संबंधित प्रश्न
______ is an example of commercial revenues.
The government imposes tax ______.
The state can promote economic development by ______.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Distinguish between fiscal policy and monetary policy.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
State the difference between income tax and expenditure tax.
Define a degressive tax.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain how indirect taxes can be made progressive.
