Question : Which of the following taxes is proportional in nature?
Option 1: Capital Gains Tax
Option 2: Income Tax
Option 3: Corporation Tax
Option 4: Goods and Services Tax
Correct Answer: Goods and Services Tax
Solution : The correct answer is Goods and Services Tax.
Indirect taxes are mostly "Proportional" in nature, which means that the tax is levied at a fixed rate as a percentage of the tax base, irrespective of the size of the tax base. On the other hand, direct taxes are progressive, which means that the tax rate increases as the taxable income increases. Goods and Services Tax is an example of a proportional tax since it is an indirect tax.
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Question : The liability to pay the tax and the actual burden of which of the following taxes lie on two different persons?
Option 1: Corporation tax
Option 2: Income tax
Option 3: Capital gains tax
Option 4: Goods and services tax
Question : Which of the following is an indirect tax?
Option 1: Death duty
Option 2: Interest tax
Option 3: Goods and services tax
Option 4: Capital gains tax
Option 1: Capital gains tax
Option 2: Excise duty
Option 3: Wealth tax
Option 4: Estate duty
Question : Which of the following may be classified as a 'Pigouvian tax'?
Option 1: Income tax
Option 2: Carbon tax
Option 3: Corporate tax
Option 4: Long term capital gain tax
Question : Which of the following sets belongs to central tax?
Option 1: Excise duty, Sales tax, and Customs duty
Option 2: Excise duty, Customs duty, and Income tax
Option 3: Income tax, Customs duty, and House tax
Option 4: Customs duty, Entertainment tax, and Income tax
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