Indirect taxes are generally
ECONOMICS
WAEC 2016
Indirect taxes are generally
- A. progressive
- B. regressive
- C. equitable
- D. proportionate
Correct Answer: B. regressive
Explanation
Indirect taxes; An indirect tax is a tax levied on goods and services rather than on income or profits. indirect taxes are regressive in nature. They are consumption based taxes. Service tax, value added tax,customs and excise duty etc are examples of
Taxes are regressive when they impose a harsher burden on the poor than on the rich.
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