Question

The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.

Options

• Progressive tax

• Regressive tax

• Direct tax

• Proportional tax

Answer 1

The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as proportional tax.

Explanation:

The proportional tax rate remains constant regardless of the taxpayer's income, as seen in examples such as the Goods and Services Tax.