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प्रश्न
Explain how indirect taxes can be made progressive.
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उत्तर
Indirect taxes are regressive in nature as their burden falls on all people indiscriminately. Indirect taxes can be made progressive by imposing heavy taxes on luxury goods and by reducing rate of indirect taxes on necessary items like food, cloth, shelter.
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संबंधित प्रश्न
The government imposes tax ______.
Under ______ the rate of tax increases with rise in tax payer's income.
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 |
State two objectives of fiscal policy.
Differentiate between direct and indirect taxes.
Briefly explain why direct taxes foster civic consciousness among people.
Explain clearly tour ways by which the state can promote economic growth and development.
Explain the term Impact of a tax.
Explain the significance of taxes.
Define the following term:
Fiscal deficit
