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Questions
What is meant by shifting of tax burden?
Explain the term Shifting of a tax.
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Solution
Shifting of the tax burden is the process by which the person or business legally responsible for paying a tax transfers that burden to another party. This happens when the taxpayer's tax responsibility is passed to someone else, usually through changes in prices or costs.
RELATED QUESTIONS
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
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 |
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
Distinguish between fiscal policy and monetary policy.
An indirect tax is not always equitable. Give two reasons to support your answer.
Give one example of progressive tax.
Which one is better progressive or regressive taxation and why?
State two differences between income tax and commodity tax.
With reference to the taxation policy.
Differentiate between progressive and regressive taxes giving an example for each.
Explain the state's role in achieving the objective of social justice in less developed countries.
