Site navigation

Which of the following taxes is progressive in structure?

Question and options

Which of the following taxes is progressive in structure?

  1. State sales tax

  2. Customs duty

  3. Income tax on individuals

  4. Goods and services tax

Answer and explanation

Correct answer: C - Income tax on individuals

Income tax on individuals is progressive because it is charged on slabs, with higher rates on higher slices of income, as in the table in section 202 of the Income-tax Act, 2025. Goods and services tax, customs duty and sales tax are levied on transactions or goods at rates that do not rise with the payer's income, so they tend to be regressive.

Practice for these exams

Related exam syllabi

More solved explanations in Income tax - basic concepts, residence & heads of income