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प्रश्न
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
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उत्तर
| S. No. | Progressive tax | Regressive tax |
| 1. | Under progressive taxation, the rate of tax increases as tax payer's income increases. | A regressive tax is one in which the rate of tax decreases as the tax payer’s income increases. |
| 2. | It has more financial impact on higher income individuals. | Regressive taxes have a greater impact on lower income individuals. |
| 3. | It is based on the principle of ability to pay. | It is not based on the principle of ability to pay. |
| 4. | Example - Income tax. | Example - Sales tax. |
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संबंधित प्रश्न
Under ______ the rate of tax increases with rise in tax payer's income.
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
What is meant by shifting of tax burden?
To which tax is this shifting of tax burden relevant?
Explain the term proportional taxation.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Discuss four fiscal policy objectives with reference to India.
Citing reasons state the superiority of Progressive tax over regressive tax.
