Which of the following is a classification of taxes based on their impact on income distribution?
A. Only direct and indirect
B. Progressive, proportional and regressive
C. Only ad valorem and specific
D. Only central and state
Answer: Option B
Solution (By JKSSB Mock Tests)
Taxes are classified as progressive (rate rises with income), proportional (constant rate) or regressive (rate falls with income) according to their effect on income distribution.
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