Which tax causes a burden on the poorer section of the society?
Indirect Tax
Indirect taxes (sales tax, GST, VAT) are levied at a uniform rate on goods and services, so every consumer pays the same percentage on a purchase regardless of income. Since poorer households spend a much larger share of their income on consumption than richer ones (who save and invest more), the same tax takes a bigger bite out of low incomes. This regressive nature places the heavier real burden on the poor.
Direct taxes (income tax, property tax) are typically progressive, with rates rising with income and exemptions for low earners, so they fall more on the wealthy.
Similar Questions
Which of the following comes under the Quarternary sector?
Private ownership of the means of production is a feature of a _______ economy.
In ________ economies, all productive resources are owned and controlled by the government.
A situation where the expenditure of the government exceeds its revenue is known as _____.
Which among the following is not a direct tax?
Short run marginal cost curve cuts the short run average cost curve from _______ at the minimum point of short run average cost.
Goods for which demand move in the opposite direction of the income of the consumer are called?
If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the average revenue is zero.
SHG promotes thrift in small proportion by a minimum contribution from each member of the group. What does 'H' stand for in SHG?
Who takes the decision regarding the savings and loan activities in a Self Help Group (SHG)?
Important Questions from Economy
When goods are produced by exploiting natural resources, it is an activity associated with:
A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:
Which goods from India dominated the international textile markets before the age of mechanized industries?
Which type of farming is practiced in areas of high population pressure on land?
The major economic attribute for comparing countries is their:
