Question

"Progressive taxation is suitable for the Indian economy." Give reason to support your answer.

Answer 1

Progressive taxation is suitable for indian economy because of the following reasons:
$\left(1\right)$ It is more suitable, as a larger part is taxed on higher incomes. In this, the rich should be taxed at a higher rate than the poor.
$\left(2\right)$ It is more economical as the cost of collection does not rise when the rate of tax increases.