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Question
Explain the Degressive taxes.
Answer in Brief
Solution
Degressive taxes are those that do not increase in proportion to income growth. This approach allows for increases in tax rates up to a specified limit, after which a uniform rate is applied.
| Income | Rate of tax |
| 10,000 | 5% |
| 15,000 | 6% |
| 20,000 | 7% |
| 25,000 | 7% |
| 30,000 | 7% |
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