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Questions
State two drawbacks of direct taxes.
Give two demerits of direct taxes.
State two demerits of direct taxes.
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Solution
- Direct taxes are unpopular as they pinch the taxpayers more.
- Direct taxes are limited in coverage as they are imposed only on the rich people.
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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 |
The state can promote economic development by ______.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Identify the tax which is most likely to faster civic conciousness.
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 |
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
What is meant by shifting of tax burden?
Explain the term proportional taxation.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain the following with examples:
Progressive tax
