Question

Assertion (A): The rate of tax increases to a certain limit and then becomes constant.

Reason (R): This system is a combination of progressive tax and regressive tax.

Options

• A is true but R is false.

• A is false but R is true.

• Both A & R are true R explains A.

• Both A & R are true but R does not explain A.

Answer 1

A is true but R is false.