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Questions
Classify the following type of tax into direct and indirect taxes:
Income tax
State whether the following is a direct or an indirect tax:
Income tax
Giving reasons classify the following into direct and indirect tax:
Income tax
Options
Direct tax
Indirect tax
Solution
Direct tax
Explanation:
It is a direct tax because its impact and incidence lie on the same persons.
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RELATED QUESTIONS
Under ______ the rate of tax increases with rise in tax payer's income.
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
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 |
The state can promote economic development by ______.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Define a degressive tax.
Classify the following type of tax into direct and indirect taxes:
Sales tax
Give two examples of direct taxes.
Explain briefly two merits of indirect tax.
Define the following term:
Fiscal deficit
