Which tax causes a burden on the poorer section of the society?

Question

YESPYQ · Accepted Answer

Correct answer: b) Indirect Tax. Money is essential to run a government and manage its affairs. For this, the government imposes a variety of taxes on the earnings of individuals and businesses. There are two types of taxes - direct taxes and indirect taxes. Direct taxes are imposed on individuals and companies by the country's supreme tax body. These taxes are directly paid by those on whom it is imposed. For instance, taxpayers directly pay income tax, tax on assets, and gifts to the government. Indirect taxes are imposed on goods and services and their final burden falls on the consumers. That is why it causes a burden on the poorer section of society. For eg - It doesn't matter how much you earn, you have to pay the same amount of tax on toothpaste as the other ones. Hence, the correct answer is “Indirect tax”

Which tax causes a burden on the poorer section of the society?

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