Practicing Success
The government increased the tax rates, which of the following can be the reason for the same? |
To extract money from the citizens To ensure equality in income distribution To make black money into white money All of the above |
To ensure equality in income distribution |
India follows a progressive system of taxation, which means higher tax rates to higher income people. This is done to promote equal distribution of income among the people. Government collect the tax from rich and exempt the poor from income tax. Thus, the money collected is spent on providing free services to the poor. |