What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sectio…
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What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sections?
✓ Correct answer: c) Regressive tax
ExplanationIn a regressive tax system, poorer sections bear a higher tax burden compared to richer sections.The tax rate decreases as income increases, so the poor pay a larger share of their income.Example: Indirect taxes like GST or sales tax affect low-income groups more.This is opposite to a progressive tax, where the rich are taxed at higher rates.
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