Question

Which of the following is the difference between tax and price?

• A. Compulsion basis while paying tax and price
• B. Payment made by tax and price for public interest
• C. Benefit while paying tax and price
• D. Direct payment for goods and services

Answer 1

The correct option is A

Compulsion basis while paying tax and price

Tax is a compulsory contribution to be paid by every citizen upon whom it is imposed whereas price is to be paid by the persons who purchase goods and services produced by the government.