Answer: Option B
Answer: (b)
An indirect tax is one in which the burden can be shifted to others. The taxpayer is not the tax bearer. The impact and incidence of indirect taxes are on different persons.
Since most of the indirect taxes are not progressive in nature, individuals may not mind paying them. In other words, indirect taxes are generally regressive in nature.
Therefore, individuals would not be de-motivated to work and to save, which may increase investment.