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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 ______.
Fiscal policy means public expenditure and tax policy of the government.
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
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Sales tax
State two drawbacks of direct taxes.
Draw a neat labelled diagram for progressive taxation.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Define a tax.
Explain the following with examples:
Progressive tax
Citing reasons state the superiority of Progressive tax over regressive tax.
