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प्रश्न
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
How are taxes used to regulate consumption and production?
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उत्तर
- Taxation policy regulates consumption and production in a country. Taxes are sometimes used to discourage the consumption and production of harmful commodities such as wine, cigarettes, etc.
- They are also effective in diverting the resources from production of non-essential commodities to essential goods.
- It can be done through differential commodity taxation by imposing heavy taxes on production of non-essential goods.
संबंधित प्रश्न
The government imposes tax ______.
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 |
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Citing reason state the advantage of a progressive tax over proportional tax.
Classify the following types of tax into direct and indirect taxes:
- Entertainment tax
- Income tax
- House tax
- Sales tax
Draw a neat labelled diagram for progressive taxation.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
How does the state fulfil the following socio-economic objective?
Environmental protection.
State the four merits of a direct tax.
Explain the significance of taxes.
