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Railways PYQCBT 2 2017

RRB NTPC · Question 119

What is the method of taxing wherein there is an increase in the tax rate as the taxable amount increases?

  1. Aggressive tax

  2. Digressive tax

  3. Progressive tax

  4. Regressive tax

Show answer & explanation

Answer: (C) Progressive tax

Explanation

In a progressive tax, the rate rises as the taxable amount rises – like India's income-tax slabs. A regressive tax takes a larger share from lower incomes.