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Question
Explain the Degressive taxes.
Answer in Brief
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Solution
Degressive taxes are those that do not increase in proportion to income growth. This approach allows for increases in tax rates up to a specified limit, after which a uniform rate is applied.
| Income | Rate of tax |
| 10,000 | 5% |
| 15,000 | 6% |
| 20,000 | 7% |
| 25,000 | 7% |
| 30,000 | 7% |
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