Advertisements
Advertisements
Questions
Explain the term Impact of a tax.
What is meant by impact of taxation?
Solution
The term impact is used to express the immediate or original imposition of tax. The impact of tax is on the person on whom it is imposed first i.e., the person who is liable to pay tax to the government.
RELATED QUESTIONS
Instruments of fiscal policy is:
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
Differentiate between direct and indirect taxes.
State the difference between income tax and expenditure tax.
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Give one example of progressive tax.
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
Draw a neat labelled diagram for progressive taxation.
State two differences between income tax and commodity tax.
Explain the following with examples:
Progressive tax
