A progressive tax system implies:
Options
AHigher tax rate for lower income
BSame tax rate for all
CHigher tax rate for higher income
DLower tax rate for higher income
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Public FinancePYQ - May 2019 (Inter)Question 123 of 20
All Questions Correct Answer
✅ Option c — Higher tax rate for higher income
All Options:
- AHigher tax rate for lower income
- BSame tax rate for all
- CHigher tax rate for higher income
- DLower tax rate for higher income
About This Chapter: Public Finance
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Fiscal Policy, Budget, Market Failure
This chapter deals with government finances — how the government earns (taxation) and spends (expenditure) money. Key topics include Fiscal Policy, types of taxes (Direct and Indirect), the Union Budget, Public Debt, and the concept of Market Failure and how government intervention corrects it.
View Official ICAI SyllabusExam Strategy Tip
Focus on the difference between Revenue and Capital items in the budget. Understand Fiscal Deficit and its implications. Tax-related MCQs are commonly asked.
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