Advertisements
Advertisements
प्रश्न
An indirect tax is not always equitable. Give two reasons to support your answer.
संक्षेप में उत्तर
उत्तर
An indirect tax is often considered not always equitable for the following two reasons:
- Burden on low-income groups: Indirect taxes, such as sales tax or VAT, apply to all individuals, regardless of income level. This means that low-income people pay the same tax rate as high-income people for products and services. As a result, a more significant proportion of their income is used to pay these taxes, increasing their tax burden.
- Indirect taxes do not account for the taxpayer's ability to pay. Since everyone pays the same rate, these taxes make no difference between those who can afford to pay more and those who cannot.
shaalaa.com
Role of State in Economic Development
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
APPEARS IN
संबंधित प्रश्न
The state can promote economic development by ______.
The major objective of monetary policy is ______.
Define Direct tax
Differentiate between direct and indirect taxes.
What is meant by shifting of tax burden?
What are progressive taxes.
Give two reasons why the government imposes tax?
State two differences between income tax and commodity tax.
Differentiate between progressive and regressive taxes giving an example for each.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
