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प्रश्न
What is meant by regressive taxation?
What are regressive taxation?
Explain the following with examples:
Regressive tax
What is regressive tax? Give an example.
What is a regressive tax?
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उत्तर
- Regressive tax is the opposite of progressive tax. A tax will be regressive when the rate of tax decreases as the tax base increases. Thus, it is directly opposite of progressive tax.
- The chief examples of regressive taxes are on these goods whose consumption society wishes to discourage, such as tobacco and alcohol.
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संबंधित प्रश्न
The government imposes tax ______.
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 ______.
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Match the following:
| Column I | Column II | ||
| A. | Impact of tax | (i) | Price stability |
| B. | Incidence of tax | (ii) | Simple to calculate |
| C. | Objective of Monetary Policy | (iii) | Ultimate burden of tax |
| D. | Proportional tax | (iv) | Original imposition of tax |
What is meant by shifting of tax burden?
Give an example of Indirect tax.
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
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.
