When the ratio of indirect taxes to total taxation revenue is very high, it leads to :
1. rise in the price level
2. higher taxation burden on the rich
3. higher taxation burden on the poor
4. fall in tax revenues

Related MCQs

• Which of the following statements about indirect taxes in India is/are true? 1. Yield from indirect taxes is much more than that from direct taxes 2. Indirect taxes have grown faster than direct taxes since independence 3. Indirect taxes are ultimately paid for by persons who do not actually pay the taxes to the Government 4. Increase in indirect taxes is a welcome feature in a developing country
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• In the context of Indian economy, consider the following pairs: Term Most appropriate description 1. Melt down Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched? [IAS 2010]
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