Types of Taxes

As compared to progressive taxation, proportional taxation makes disposable income less sensitive to fluctuations in GDP

Taxes Levied

Old Taxes (before GST)

Principles of Taxation

Objectives of Taxation

Tax Reforms

Terms

Tax exemption

exemption from paying tax till certain amount

Tax rebate

  • relief that can be claimed to reduce the tax to be paid
  • rebate applied to lower middle class only

Excise duty

levied on production or manufacturing

Cascading effect of tax

  • tax on tax
  • good taxed at every stage
  • inc cost
  • tax inefficiency
  • Goods and Services Tax aimed at reducing tax inefficiency