Advertisements
Advertisements
Questions
Give two reasons why the government imposes tax?
Give two objectives of taxation.
Answer in Brief
Advertisements
Solution
Objectives of Taxation Policy are:
- The government imposes taxes to raise revenue.
- Taxes are also imposed to reduce inequalities in the distribution of income.
shaalaa.com
Role of State in Economic Development
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
The government imposes tax ______.
Monetary policy means regulation of money supply by the monetary authority.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Define Indirect tax
Citing reason state the advantage of a progressive tax over proportional tax.
To which tax is this shifting of tax burden relevant?
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain the term Incidence of a tax.
Differentiate between progressive and regressive taxes giving an example for each.
Explain the significance of taxes.
