A tax imposed at the same percentage rate on all levels of taxable income is called what?
Correct answer: D. Proportional tax
- A. Progressive tax
- B. Regressive tax
- C. Degressive tax
- D. Proportional tax
Explanation
A proportional tax applies one constant rate to the tax base, regardless of the taxpayer's income level. A progressive tax uses rising rates, while a regressive tax takes a larger relative burden from lower-income taxpayers.
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About Taxation
Taxation covers the principles used to assess and collect taxes from individuals, businesses and transactions, with emphasis on income tax and sales tax concepts in Pakistan. Questions involve taxable income, exemptions, deductions, tax liability, withholding, returns, assessment, tax avoidance versus evasion, and the distinction between direct and indirect taxes.
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50 free Taxation MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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