The principle of "ability to pay" suggests that those with greater financial resources should contribute more to public revenue. Proportional taxation fails this principle as it places the same relative burden on both the rich and the poor.
Which of the following statement is not correct regarding proportional taxation?
Asked in Protection Officer 2022 · Topic: Fiscal Policy & Revenue (Taxation System in India: Direct, Indirect taxes, and Tax Reforms (including GST))
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Answer: D. It is in accordance to a person’s ability to pay.
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