Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:
Which type of tax was reduced in order to encourage savings and voluntary disclosure of income?
Options:
Excise taxes
Corporate taxes
Indirect taxes
Direct taxes
Correct Answer:
Direct taxes
Explanation:
Since 1991, there has been a continuous reduction in taxes on individual incomes in order to encourage savings and voluntary disclosure of income. It is believed that moderate rates of income tax promote these behaviors. Corporate tax is a part of direct taxes.