Advertisements
Advertisements
Question
The following table indicates:
| Tax Base in ₹ | Rate of tax in % |
| 10,000 | 8 |
| 20,000 | 8 |
| 30,000 | 8 |
| 40,000 | 8 |
Options
Progressive taxation
Regressive taxation
Proportional taxation
Degressive taxation
MCQ
Solution
Proportional taxation
Explanation:
- The table shows a proportional tax system. In this system, the tax rate stays at 8% regardless how large the tax base is (₹ 10,000, ₹ 20,000, ₹ 30,000, or ₹ 40,000).
- In a balanced tax system, everyone pays the same amount of their income, no matter how much they make. In other words, the tax rate stays the same regardless of how much cash is made or how much tax is collected.
shaalaa.com
Role of State in Economic Development
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Under ______ the rate of tax increases with rise in tax payer's income.
Which of these taxes is most likely to be progressive?
Wealth tax is an example of:
Name any two instruments of Fiscal Policy.
Distinguish between fiscal policy and monetary policy.
Define Indirect tax
Classify the following type of tax into direct and indirect taxes:
Income tax
Give an example of Indirect tax.
Draw a neat labelled diagram for progressive taxation.
Explain the state's role in achieving the objective of social justice in less developed countries.
