PRC-3 · Chapter 16 · Question 1 of 20
The government implements an income tax system where individuals earning Rs. 50,000 pay 5% tax, those earning Rs. 200,000 pay 15% tax, and those earning Rs. 1 million pay 30% tax. This tax structure is explicitly:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Progressive
Explanation
A progressive tax takes a larger percentage of income from high-income earners than it does from low-income individuals, aiming to reduce income inequality.
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