Q. Consider the following statements regarding “progressive taxation”:
1.It refers to increasing rates of tax for increasing value or volume on which the tax is being imposed.
2.Goods and Services Tax is an example of progressive taxation.
Which of the statements given above is/are incorrect?
Answer: B
Notes:
Explanation: Progressive Taxation: This method has increasing rates of tax for increasing value or volume on which the tax is being imposed.
Indian income tax is a typical example of it. The idea here is less tax on the people who earn less and higher tax on the people who earn more—classifying income earners into different slabs.
Source: Ramesh Singh
