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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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Similar questions

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

Q. Consider the following taxes:
1. Sales tax

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Q. Which of the following best completes the passage below?
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ___.

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