A payment made by the government to the tax-payers to enable them to sell some goods at a lower price.

Subsidy

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Fees

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Direct tax

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Indirect tax

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Solution

The correct option is A
Subsidy

Subsidy is a payment made by the government to the tax payers to enable them to sell some goods at a lower price.

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Similar questions

Q. Tax payments to the government do not provide any direct benefit to the tax payer.

21. Consider the following statements regarding Tax Expenditure:
1. It is the expenditure incurred by the Government in the collection of taxes.
2. It shows the extent of indirect subsidy enjoyed by the tax payers in the country.
3. Tax Expenditure shows the opportunity cost of taxing at concessional rates, or the opportunity cost of giving exemptions.
Which of the above statement(s) is/are correct?

Q. The government is in a dillema on whether to adopt the goods and services tax (GST) system or follow the old indirect tax system. As a advisor to the government, how will you convince the government to adopt the goods and services tax system?

Q. The government charges higher direct tax from the rich and lower from poor, whereas the same indirect tax is charged to all the citizens.

Q. Taxes as old indirect tax system (all amount in ₹):
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(+) Cost 9
(=) Value of output 130
(+) Taxes @ 10% 13
(=) Selling price 143

Assuming the same cost price, cost, and tax rate, what will the goods and services tax be?

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A payment made by the government to the tax-payers to enable them to sell some goods at a lower price.

The correct option is A Subsidy Subsidy is a payment made by the government to the tax payers to enable them to sell some goods at a lower price.

The correct option is A
Subsidy

Subsidy is a payment made by the government to the tax payers to enable them to sell some goods at a lower price.