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Questions
What is meant by regressive taxation?
What are regressive taxation?
Explain the following with examples:
Regressive tax
What is regressive tax? Give an example.
What is a regressive tax?
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Solution
- Regressive tax is the opposite of progressive tax. A tax will be regressive when the rate of tax decreases as the tax base increases. Thus, it is directly opposite of progressive tax.
- The chief examples of regressive taxes are on these goods whose consumption society wishes to discourage, such as tobacco and alcohol.
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RELATED QUESTIONS
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 ______.
Which of the statement is true for income tax?
Which of the following taxes generate civic consciousness among people?
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 direct tax
Briefly explain why direct taxes foster civic consciousness among people.
Which one is better progressive or regressive taxation and why?
Explain clearly tour ways by which the state can promote economic growth and development.
Define a tax.
Explain the term Impact of a tax.
