Inflation is a regressive tax because its burden falls more heavily on the poor and those with fixed incomes, as it reduces their real purchasing power more than it affects the wealthy.
Inflation is described as a regressive form of taxation because
Asked in Sub Inspector 2021 · Topic: National Income & Gross Domestic Product (Limitations of GDP as a Measure of Welfare and Economic Development)
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Answer: D. it affects the poor and vulnerable sections more
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