Which of the following is an example of a regressive tax? MCQ with Answer and Explanation

Which of the following is an example of a regressive tax?
A. Income tax with higher rates for higher income
B. Goods and Services Tax (GST)
C. Corporate tax with progressive slabs
D. Wealth tax
Answer: Option B
Solution (By JKSSB Mock Tests)
GST is largely regressive because lower-income groups spend a higher proportion of their income on consumption, bearing a relatively higher tax burden compared to higher-income groups.

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Practice More Economy Set 1 Questions

Question #1
The 'credit card' allows a customer to:
A. trade securities
B. borrow money up to a limit for purchases
C. deposit cash only
D. spend from bank account only

Correct Answer: Option B


Explanation:
A credit card allows borrowing up to a limit for purchases.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Comptroller and Auditor General' of India submits audit reports to:
A. Finance Minister
B. President
C. RBI Governor
D. Prime Minister

Correct Answer: Option B


Explanation:
CAG submits audit reports to the President or Governor.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' rate on mobile phones is:
A. 5%
B. 12%
C. 28%
D. 18%

Correct Answer: Option D


Explanation:
Mobile phones attract 18% GST.

This question belongs to: Economy GK Economy Set 1