Advertisements
Advertisements
Question
Which of the following is an advantage of direct taxes?
Options
Convenient to pay
Wide coverage
Levied according to the taxable capacity
No Evasion
Advertisements
Solution
Levied according to the taxable capacity
Explanation:
- One of the key advantages of direct taxes is that they are levied according to the taxable capacity of the taxpayer.
- This means that individuals or entities are taxed based on their ability to pay, ensuring that those with higher incomes or wealth contribute more to the public revenue than those with lower incomes.
RELATED QUESTIONS
______ is an example of commercial revenues.
Fiscal policy means public expenditure and tax policy of the government.
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 |
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
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 ______.
Classify the following type of tax into direct and indirect taxes:
Income tax
Give one example of progressive tax.
Give two reasons why the government imposes tax?
Explain clearly tour ways by which the state can promote economic growth and development.
