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Questions
Give two reasons why the government imposes tax?
Give two objectives of taxation.
Solution
Objectives of Taxation Policy are:
- The government imposes taxes to raise revenue.
- Taxes are also imposed to reduce inequalities in the distribution of income.
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RELATED QUESTIONS
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
Read the following statements carefully and choose the correct alternative:
Assertion (A): Income tax is a direct tax.
Reason (R): GST is an indirect tax.
How can tax be used as an instrument to bring about equitable distribution of wealth and income?
What is meant by shifting of tax burden?
To which tax is this shifting of tax burden relevant?
State two drawbacks of direct taxes.
Explain the following with examples:
Progressive tax
Differentiate between progressive and regressive taxes giving an example for each.
Give two examples of direct taxes.
Explain how indirect taxes can be made progressive.
