Advertisements
Advertisements
Question
Explain how indirect taxes can be made progressive.
Advertisements
Solution
Indirect taxes are regressive in nature as their burden falls on all people indiscriminately. Indirect taxes can be made progressive by imposing heavy taxes on luxury goods and by reducing rate of indirect taxes on necessary items like food, cloth, shelter.
APPEARS IN
RELATED QUESTIONS
The government imposes tax ______.
Which of the following is an advantage of direct taxes?
Which of the following taxes generate civic consciousness among people?
Define Indirect tax
An indirect tax is not always equitable. Give two reasons to support your answer.
Give two reasons why the government imposes tax?
How does the state fulfil the following socio-economic objective?
Environmental protection.
State the four merits of a direct tax.
Explain the term Impact of a tax.
Explain the state's role in achieving the objective of social justice in less developed countries.
