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Question : Indirect taxes by nature are:

Option 1: degressive

Option 2: regressive

Option 3: progressive

Option 4: proportional


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: regressive


Solution : The correct option is regressive.

Indirect taxes are considered regressive because they take a larger percentage of income from lower-income individuals. This is because these taxes are applied uniformly to goods and services without regard for the individual's income level. As a result, people with lower incomes end up spending a larger proportion of their earnings on necessities, which are subject to these taxes.

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