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प्रश्न
Explain briefly two merits of indirect tax.
थोडक्यात उत्तर
उत्तर
Merits of indirect tax are as follows:
- Indirect taxes are convenient to pay because they are paid in small amounts and are included in the price of the commodity. Taxpayers do not feel the burden of these taxes.
- Indirect taxes can be used to increase social welfare. The consumption of goods which are undesirable and harmful such as wine, cigarettes, etc. can be discouraged by imposing heavy taxes on them.
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संबंधित प्रश्न
Monetary policy means regulation of money supply by the monetary authority.
Define Indirect tax
An indirect tax is not always equitable. Give two reasons to support your answer.
What is meant by regressive taxation?
Explain how indirect taxes can be inflationary.
State two drawbacks of direct taxes.
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
State two differences between income tax and commodity tax.
Explain the following with examples:
Progressive tax
Give two examples of direct taxes.
