ICSE Class X Economics 2019 Solved Papers
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Question : 19
Total: 40
Indirect taxes are regressive in nature. How can they be made progressive?
Solution:
Indirect taxes are regressive in nature as it is generally imposed on the consumption of goods. They are indiscriminately in that sense the poor people have to pay as much as rich people.
It can be made progressive and equitable by imposing heavy taxes on luxury goods consumed by the rich consumers and low taxes on the essential commodities.
It can be made progressive and equitable by imposing heavy taxes on luxury goods consumed by the rich consumers and low taxes on the essential commodities.
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