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Question
Which of the following is an advantage of direct taxes?
Options
Convenient to pay
Wide coverage
Levied according to the taxable capacity
No Evasion
Solution
Levied according to the taxable capacity
Explanation:
- One of the key advantages of direct taxes is that they are levied according to the taxable capacity of the taxpayer.
- This means that individuals or entities are taxed based on their ability to pay, ensuring that those with higher incomes or wealth contribute more to the public revenue than those with lower incomes.
RELATED QUESTIONS
The government imposes tax ______.
Under ______ the rate of tax increases with rise in tax payer's income.
The state can promote economic development by ______.
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.
To which tax is this shifting of tax burden relevant?
Classify the following type of tax into direct and indirect taxes:
Income tax
Classify the following type of tax into direct and indirect taxes:
Sales tax
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
State the following:
Three demerits of an Indirect tax.
Differentiate between progressive and regressive taxes giving an example for each.
