Match the following lists: List-I List-II (a) Specific tax (i) A tax expressed as proportion of the…
A specific tax is an absolute amount per unit, while an ad valorem tax is proportional to a commodity's price. A regressive tax takes a decreasing proportion of income as…
Choose your answer
Match the following lists:
| List-I | List-II |
| (a) Specific tax | (i) A tax expressed as proportion of the price of a commodity |
| (b) Regressive tax | (ii) An absolute amount of tax levied per unit of commodity |
| (c) Direct tax | (iii) A tax which takes a decreasing proportion of income as income rises |
| (d) Ad Valorem tax | (iv) A tax paid by a person on whom it is legally imposed |
Answer and explanation
Correct answer B
A specific tax is an absolute amount per unit, while an ad valorem tax is proportional to a commodity's price. A regressive tax takes a decreasing proportion of income as income rises. A direct tax is paid by the person on whom it is legally imposed.
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West Bengal SET (WB SET)