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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
MCQ
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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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______ are those taxes which are paid by the same person on whom they have been imposed.
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| Column A | Column B | ||
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| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
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Promoting industrial growth.
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