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Introduction to GST

A tax is one ...

Question

A tax is one in which the rate of tax remains the same irrespective of the increase in income level.

A

Proportional tax

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B

Progressive tax

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C

Advalorem tax

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D

Specific tax

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Solution

The correct option is A
Proportional tax

Under the proportional tax system, all tax payers pay an equal proportion of income in the form of taxes.

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A tax whose rate remains the same irrespective of the increase in income level.

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