CAF-2 · Chapter 1 · Question 5 of 13
A tax system that requires the same percentage of income from all taxpayers, applying the same rate across low, middle, and high-income earners, is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) A proportional (flat) tax
Explanation
A proportional tax, also known as a flat tax, requires the same percentage of income from all taxpayers regardless of their earnings.
More System of Taxation in Pakistan MCQs
- Q7Which of the following is considered a direct tax under the Pakistani taxation system?
- Q8Which of the following accurately describes a core characteristic of indirect taxes?
- Q9In the history of tax laws in the sub-continent, when was the first formal Income Tax Act introduced by the British Empire?
- Q10The definition of "agricultural income," which remains largely similar in the modern Income Tax Ordinance 2001, was first introduced in…
- Q11Which principle of a "sound tax system" requires that the sources of revenue, taken as a whole, should be sufficient to meet the…