Advertisements
Advertisements
Questions
Explain the term Impact of a tax.
What is meant by impact of taxation?
Advertisements
Solution
The term impact is used to express the immediate or original imposition of tax. The impact of tax is on the person on whom it is imposed first i.e., the person who is liable to pay tax to the government.
RELATED QUESTIONS
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Define fiscal policy.
Differentiate between direct and indirect taxes.
Briefly explain why direct taxes foster civic consciousness among people.
Explain the term proportional taxation.
State two differences between income tax and commodity tax.
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.
Explain the following with examples:
Progressive tax
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
