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Question
Which of these taxes is most likely to be progressive?
Options
Entertainment tax
Goods and services tax
Property tax
Custom duty
Solution
Property tax
Explanation:
- Property tax is expected to be progressive. Progressive taxes are those in which the tax rate rises as the taxable amount increases.
- Property taxes are frequently called progressive because they are typically dependent on the value of the property held.
- Individuals with more valued properties (which frequently signify greater income) pay higher taxes, making it progressive in nature.
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RELATED QUESTIONS
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Which of the following taxes generate civic consciousness among people?
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
Citing reason state the advantage of a direct tax over an indirect tax.
What is meant by regressive taxation?
Give an example of Indirect tax.
Explain the term Incidence of a tax.
Give two examples of direct taxes.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
