Assertion (A): Indirect Taxes are regressive in their impact. Reason (R): They are levied at a uniform rate irrespective of the income level of the consumer.
A.A is true but R is false
B.Both A and R are true but R is not the correct explanation of A
C.A is false but R is true
D.Both A and R are true and R is the correct explanation of A
Explanation:
Because indirect taxes (like GST) are charged flatly on goods, lower-income people pay a higher proportion of their income, causing a regressive effect.
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