Question
Regressive tax can be defined as
- The one by which the revenue collected rises proportionally with income
- The rates of tax increase for increasing values or volumes on which the tax is levied
- The one where the proportion of tax paid falls as income rises
Answer: Option B
Answer: (b)
Regressive tax is one where the proportion of tax paid falls as income rises. The most regressive tax is a poll tax, levied at a fixed rate per person regardless of income.
A tax system can be made regressive by having indirect taxes levied at relatively high rates on goods heavily consumed by the poor
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Answer: (b)
Regressive tax is one where the proportion of tax paid falls as income rises. The most regressive tax is a poll tax, levied at a fixed rate per person regardless of income.
A tax system can be made regressive by having indirect taxes levied at relatively high rates on goods heavily consumed by the poor
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