Which of the following taxes is progressive in structure?
Question and options
Which of the following taxes is progressive in structure?
State sales tax
Customs duty
Income tax on individuals
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.
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