Advertisements
Advertisements
प्रश्न
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
How can direct taxes reduce income inequalities.
Mention one way by which the government can reduce the disparity in income and wealth distribution of its citizens in a developing economy.
Explain two ways by which the government can reduce income inequalities in a developing economy.
How can the government help in reducing inequalities of income?
Can direct taxes reduce income inequality?
Explain how taxation can be used to reduce inequality of income.
How does direct tax reduce income inequality?
Advertisements
उत्तर
The government can reduce income inequalities in the following ways:
- Direct taxes are progressive in nature.
- Rich people are subjected to higher rates of taxation, while the poor are exempt from direct taxes.
- The policy of transfer payments (like old age pensions and unemployment allowances) can be used to transfer incomes to poor people.
- The government may subsidise the consumption expenditure of low-income groups by providing subsidised food through fair-priced shops.
- Hence, these taxes help in removing inequalities of income.
Notes
Students should refer to the answer according to their questions.
APPEARS IN
संबंधित प्रश्न
Which of the following is an advantage of direct taxes?
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Citing reason state the advantage of a direct tax over an indirect tax.
Give two reasons why the government imposes tax?
Define a tax.
State two differences between income tax and commodity tax.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
State three demerits of an Indirect tax.
