The following are some of the consequences of the parallel economy in India: i. Increasing the burden…
Increasing the burden on honest taxpayers, reducing government revenue and promoting conspicuous consumption are consequences of the parallel economy. Concealed income…
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The following are some of the consequences of the parallel economy in India:
i. Increasing the burden on honest taxpayers
ii. Revenue loss for the government
iii. Promotion of non-essential conspicuous consumption products.
iv. Leads to a fairer distribution of wealth and income.
Find the correct combination from the codes given below:
Answer and explanation
Correct answer A
Increasing the burden on honest taxpayers, reducing government revenue and promoting conspicuous consumption are consequences of the parallel economy. Concealed income escapes taxation and can increase inequality rather than produce a fairer distribution of income and wealth.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)