A progressive direct tax system ensures:

CA Foundation · Business Economics · PYQS · January 2025
A progressive direct tax system ensures:
(A) A. Economic growth with stability because it distributes the burden of taxes unequally.
(B) B. Those who have greater ability to pay contribute more and the tax burden is distributed fairly among the population.
(C) C. Uniform taxes for all.
(D) D. Luxuries are taxed heavily.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Those who have greater ability to pay contribute more and the tax burden is distributed fairly among the population.

Topics: Public Finance

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic