The taxation regime in which a constant rate of tax is charged from all people, irrespective of their income levels is.
Answer & explanation
Correct answer: option 3
The correct answer is Proportional Taxation.
Proportional taxation is a taxation system in which a constant rate of tax is charged from all people, regardless of their income levels. This means that everyone pays the same percentage of their income in taxes, regardless of whether they are rich or poor. For example, if the proportional tax rate is 10%, then someone who earns Rs 10,000 will pay Rs 1,000 in taxes, and someone who earns Rs 100,000 will pay Rs 10,000 in taxes.
The other options are incorrect:
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Progressive taxation is a taxation system in which the tax rate increases as income increases. This means that people with higher incomes pay a larger percentage of their income in taxes than people with lower incomes.
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Regressive taxation is a taxation system in which the tax rate decreases as income increases. This means that people with higher incomes pay a smaller percentage of their income in taxes than people with lower incomes.
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Degressive taxation is a taxation system in which the tax rate decreases after a certain point. This means that people with very high incomes pay a lower percentage of their income in taxes than people with lower incomes.