Answer-Value Added Tax (VAT) is an example of:

VAT is an indirect tax levied on consumption. Since lower-income households spend a larger proportion of their income, the tax consumes a higher percentage of their income, making it regressive in effect.

Question

Value Added Tax (VAT) is an example

of:

A A direct, progressive tax.

B A direct, proportional tax.

C An indirect, regressive tax.

D An indirect, progressive tax.

E None of these

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Value Added Tax (VAT) is an example

Solution