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Questions
State two differences between income tax and commodity tax.
State two difference between tax on income and tax on a commodity.
Mention two points of distinction between tax on income and tax on commodity.
Distinguish Between
Solution
| S. No. | Income tax | Commodity tax |
| 1. | Income tax is a direct tax. | Tax on a commodity is an indirect tax. |
| 2. | Tax burden of income tax cannot be shifted to another. | tax burden on a commodity can be shifted wholly or particularly on to its buyers in the form of higher prices. |
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Role of State in Economic Development
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Chapter 6: The State and Economic Development - QUESTIONS [Page 167]
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