[Solved] Indirect taxes by nature are -

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Q.	Indirect taxes by nature are -
A.	degressive
B.	regressive
C.	progressive
D.	proportional
Answer» B. regressive
Explanation: An indirect tax is one in which the burden can be shifted to others. The tax payer is not the tax bearer. The impact and incidence of indirect taxes are on different persons. Since, most of the indirect taxes are not progressive in nature, individuals may not mind to pay them, In other words, indirect taxes are generally regressive in nature. Therefore, individuals would not be de-motivated to work and to save, which may increase investment.

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