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Question
Which of these taxes is most likely to be progressive?
Options
Entertainment tax
Goods and services tax
Property tax
Custom duty
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Solution
Property tax
Explanation:
- Property tax is expected to be progressive. Progressive taxes are those in which the tax rate rises as the taxable amount increases.
- Property taxes are frequently called progressive because they are typically dependent on the value of the property held.
- Individuals with more valued properties (which frequently signify greater income) pay higher taxes, making it progressive in nature.
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RELATED QUESTIONS
Which of the following is an advantage of direct taxes?
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 |
To which tax is this shifting of tax burden relevant?
Classify the following type of tax into direct and indirect taxes:
Income tax
Which one is better progressive or regressive taxation and why?
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Explain the significance of taxes.
Give two examples of direct taxes.
Explain the state's role in achieving the objective of social justice in less developed countries.
