- 5 Marks
PT – Mar 2024 – L2 – Q1b – Overview of the Ghanaian Tax System and Fiscal Policy
Explain the features that distinguish progressive, proportional, and regressive taxes.
Question
A tax may be described in a number of ways based on the relationship between income earned by a person and the tax rate applicable to that income. Again, an important feature of a tax system is the percentage of the tax burden relative to income or consumption, thus, the terms progressive, proportional, and regressive are used to describe the way the rate of tax progresses from low to high; from high to low or proportionally.
Required:
In relation to the scenario above, explain progressive, proportional, and regressive taxes, stating the main features that distinguish them. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Income Tax, Progressive Tax, Proportional Tax, Regressive Tax, Tax Types
- Level: Level 2
- Topic: Overview of the Ghanaian Tax System and Fiscal Policy
- Series: MAR 2024
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